JAKKS Pacific, Inc (NASDAQ:JAKK) continues to move lower and extending its month long correction.
Market Action
As of 1:10, JAKK stock jumped 62 cents or 6.78% to $9.80 with more than 100K shares, compared to its average volume of 189K shares. The stock has moved within a range of $ 9.59 – 9.93 after opening the trade at $9.70.
JAKKS Pacific Announces Successful Completion of Debt Refinancing
- announced that on June 2, 2021 it completed the successful refinancing of its existing term loan facility with a new term loan facility from Benefit Street Partners L.L.C. (“BSP”) and entered into a new asset-based revolving credit facility with JP Morgan Chase (“JPM”).
- The new first lien term loan facility (“Term Loan”) has a principal balance of $99.0 million maturing in June 2027. The Term Loan will bear interest at a rate of LIBOR plus 6.50% – 7.00% (determined by reference to a net leverage pricing grid), subject to a 1.0% LIBOR floor. Proceeds from the new term loan facility, together with available cash on hand, were used to repay the Company’s existing $128.9 million 10.5% term loan facility maturing in 2023, plus unpaid interest and fees and expenses related to the refinancing transactions.
- Under the BSP Term Loan, the Company can draw an additional $19.0 million to fund the redemption of any of its 2023 Convertible Senior Notes. The repayment of the Term Loan accelerates the maturity of the Convertible Senior Notes to September 1, 2021, 91 days from the repayment of the Term Loan. As of June 3, 2021, the outstanding Convertible Senior Notes’ balance was $18.9 million.
){kind=link}