JAKKS Pacific, on June 24, 2025, refinanced its existing asset-based revolving credit facility with a new cash flow based first lien secured revolving credit facility with BMO Bank with a term ending in 2030.
The new first lien secured credit facility replaced the company’s existing $67.5 million revolving credit facility maturing in June 2026. Any amounts borrowed under the new credit facility will have an interest rate equal to the applicable Secured Overnight Financing Rate (SOFR) plus 150 basis points (or higher depending on the immediately preceding quarterly net leverage ratio). The new credit facility is secured by substantially all of the assets of the company and may be used for working capital, capital expenditures and other general corporate purposes. No indebtedness was outstanding on the existing facility.
“Our new credit agreement provides us with improved covenants and increased liquidity given how the seasonality of our business affects our net availability with asset-based lending. Today’s refinancing further positions JAKKS Pacific to continue its strong momentum as we execute on our strategy to increase margins and cash flow, grow EBITDA, and ultimately drive value to shareholders,” John Kimble, chief financial officer of the company, said. “We appreciate the strong support of the bank’s team in putting this new agreement in place, and their confidence in our business and performance. This credit facility gives us the flexibility to take advantage of new opportunities to drive our growth and performance in a challenging global economic environment.”
