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SANTA MONICA - Toy manufacturer JAKKS Pacific, Inc. (NASDAQ:JAKK), currently valued at $229.72 million and maintaining a "GREAT" financial health score according to InvestingPro, has refinanced its existing asset-based revolving credit facility with a new cash flow based first lien secured revolving credit facility from BMO Bank NA, according to a press release statement issued Wednesday.
The new $67.5 million facility, which matures in 2030, replaces the company’s previous revolving credit facility that was set to expire in June 2026. The agreement was finalized on June 24.
Under the terms of the new credit facility, borrowed amounts will have an interest rate equal to the applicable Secured Overnight Financing Rate (SOFR) plus 150 basis points, with potential rate increases based on quarterly net leverage ratios.
The facility is secured by substantially all of JAKKS Pacific’s assets and can be used for working capital, capital expenditures and other general corporate purposes. No debt was outstanding on the previous facility at the time of refinancing. This aligns with the company’s conservative debt management approach, as InvestingPro data indicates JAKKS holds more cash than debt on its balance sheet, with total debt of just $56.92 million. InvestingPro subscribers can access 10+ additional key insights about JAKKS’s financial position in the comprehensive Pro Research Report.
John Kimble, Chief Financial Officer of JAKKS Pacific, stated that the new agreement provides improved covenants and increased liquidity, addressing how the seasonality of the company’s business affects net availability with asset-based lending.
JAKKS Pacific designs, manufactures and markets toys and consumer products globally. The company’s proprietary brands include AirTitans, Disguise, Fly Wheels, and several others, alongside entertainment-inspired products featuring licensed properties.
Further details about the debt refinancing are available in the company’s Form 8-K filing.
In other recent news, JAKKS Pacific reported a significant improvement in its financial performance for the first quarter of 2025. The company announced an adjusted earnings per share (EPS) loss of $0.03, which was substantially better than the forecasted loss of $1.31. Revenue for the quarter reached $113.3 million, exceeding expectations of $94.9 million, marking a 26% increase year-over-year. JAKKS Pacific attributed its strong performance to high demand for film-tied products and growth in its global dolls and role play business. The company also approved a $0.25 per share dividend for the second quarter. Despite potential challenges from tariffs, JAKKS Pacific is focusing on international market expansion and maintaining product quality. Analysts from firms like SCC Research highlighted the company’s strong start to the year, noting its resilience in a challenging economic environment. Additionally, JAKKS Pacific is exploring opportunities for mergers and acquisitions to further strengthen its market position.
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