Funko entered into a commitment letter with PNC Bank and PNC Capital Markets for new senior secured credit facilities. JPMorgan Chase Bank will serve as joint lead arranger and syndication agent capacities for the facilities.
Under the terms of the commitment letter, the credit facilities total $285 million (consisting of a revolving credit facility of $50 million and a term loan of $235 million) and will mature five years from the closing date. Borrowings are anticipated to initially accrue interest at a rate per year equal to, at the company’s option, either LIBOR plus an applicable margin of 3.25%, or base rate plus an applicable margin of 2.25%.
“Over the past several years, Funko has demonstrated to the financial community its ability to execute against its growth strategies, leading to increased sales and delivering solid financial results,” said Brian Mariotti, Funko’s CEO. “We are pleased that this new commitment letter recognizes the continued improvement in our financial strength.”
Everett, WA-based Funko designs, sources and distributes licensed pop culture products across multiple categories, including vinyl figures, action toys, plush, apparel, housewares and accessories for consumers who seek tangible ways to connect with their favorite pop culture brands and characters.