JAKKS Pacific Announces Prepayment of Term Loan
June 06 2023 - 7:00AM
Business Wire
JAKKS Pacific, Inc. [NASDAQ: JAKK] today announced that on June
5, 2023 it repaid in full its Term Loan from Benefit Street
Partners after making a voluntary prepayment of $30.5 million using
cash on hand. The Company estimates that prepayment of the term
loan could save it approximately $1.2 million in cash expense for
the balance of this fiscal year. The Company will accelerate
approximately $0.7 million of amortizable non-cash deferred
financing costs associated with the prepayment to the second
quarter ending June 30, 2023. The Company continues to maintain its
asset-based revolving credit line with JP Morgan Chase Bank. The
excess borrowing availability was $30.2 million as of March 31,
2023.
Management Commentary
“This represents an important milestone in achieving our goal of
building a financially strong company, self-sustaining from its
cash flows and well positioned for the future,” said Stephen
Berman, JAKKS Pacific Inc.’s Chairman and CEO, “It is gratifying to
see the results of our focus over the past several years to
strengthen all aspects of our business to improve our
profitability. As a positive result of that team effort, we have
generated sufficient excess cash flow that we can prepay this loan
at this time.”
About JAKKS Pacific,
Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and
marketer of toys and consumer products sold throughout the world,
with its headquarters in Santa Monica, California. JAKKS Pacific’s
popular proprietary brands include: Fly Wheels®, Perfectly Cute®,
ReDo® Skateboard Co., AirTitans®, Sky Ball®, JAKKS Wild Games™,
Moose Mountain®, Maui®, SportsZone™, Kids Only!™, Xtreme Power
Dozer®, Disguise®, WeeeDo®, Ami Amis™ and a wide range of
entertainment-inspired products featuring premier licensed
properties. Through JAKKS Cares, the company’s commitment to
philanthropy, JAKKS is helping to make a positive impact on the
lives of children. Visit us at www.jakks.com and follow us on
Instagram (@jakkstoys), Twitter (@jakkstoys) and Facebook
(@jakkstoys).
Forward Looking Statements
This press release may contain “forward-looking statements”
(within the meaning of the Private Securities Litigation Reform Act
of 1995) that are based on current expectations, estimates and
projections about JAKKS Pacific's business based partly on
assumptions made by its management. These statements are not
guarantees of future performance and involve risks, uncertainties
and assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such statements due to numerous factors,
including, but not limited to, those described above and in other
of our public filings, changes in demand for JAKKS Pacific's
products, product mix, the timing of customer orders and
deliveries, the impact of competitive products and pricing,
economic conditions, or that any future transactions will result in
future growth or success of JAKKS. The “forward-looking statements”
contained herein speak only as of the date on which they are made,
and JAKKS undertakes no obligation to update any of them to reflect
events or circumstances after the date of this release. The content
of the websites listed above are not incorporated into this
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20230606005349/en/
JAKKS Pacific Investor Relations (424) 268-9567; Lucas Natalini,
investors@jakks.net
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