SANTA MONICA, Calif.--(BUSINESS WIRE)--Oct. 19, 2020-- JAKKS Pacific, Inc. (NASDAQ: JAKK, “Company”) has reached an agreement with holders of its term loan (“the Term Loan Group”) and Wells Fargo, holder of its revolving credit facility to receive a waiver on its EBITDA covenant until March 31, 2022. The term loan previously had a covenant requiring trailing 12-month EBITDA (as defined and adjusted) to be at least $34 million. Under the agreement reached with lenders, the trailing 12-month EBITDA requirement has been reduced to $25 million, which will not be calculated earlier than March 31, 2022.

Under the agreement, JAKKS Pacific will pre-pay $15.0 million of the term loan immediately and, under certain conditions, pre-pay up to an additional $5.0 million no later than the third quarter of 2021. As of September 30^th, the Company had $138.8 million outstanding on its term loan.

Stephen Berman, JAKKS’ co-founder and CEO said, “The agreement we have reached with our lenders allows us to reduce our indebtedness and related interest expense without additional dilution to our shareholders, while also providing greater financial flexibility as we continue to work on improving our operations and positioning the company for future growth. We appreciate the continued demonstration of support.”

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™, Kitten Catfe™, Perfectly Cute™, ReDo™ Skateboard Co, X-Power™, Disguise®, Moose Mountain®, Maui®, Kids Only!®; a wide range of entertainment-inspired products featuring premier licensed properties; and C’est Moi™, a new generation of clean beauty. 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 (JAKKS Pacific).

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JAKKS Pacific 
Jared Wolfson, (424) 268-9330
SVP, Media and Entertainment
smcgowan@gatewayir.com

Gateway Investor Relations
Sean McGowan, (949) 574-3860
Managing Director
smcgowan@gatewayir.com

Source: JAKKS Pacific, Inc.