SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug. 3, 2017--
JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Company has
agreed with Oasis Management and Oasis Investments II Master Fund Ltd.,
a holder of $21.55 million face amount of its 4.25% Convertible Senior
Notes due in 2018 on the principal terms of the modification of such
Notes to extend the maturity date to November 2020 and reduce the
interest rate to 3.25%. After such modification the balance of the face
amount of the 2018 Notes will have been reduced to approximately $21.15
The modified note will be convertible at the option of the holder into
shares of the Company’s common stock. The initial conversion rate will
be based upon 105% of the average 10 day market price preceding
consummation of the exchange, subject to two resets of the conversion
rate on November 2018 and November 2019 based upon 105% of the average 5
day market price, subject to a floor equal to 30% of the initial
conversion price, and a conversion blocker that will limit the number of
shares into which the Note can be converted on any conversion date, when
combined with any other shares of the Company’s common stock owned by
the holder, to 9.9% of the Company’s issued and outstanding shares of
common stock. In addition, without approval of the Company’s
shareholders, the aggregate number of shares into which the modified
note can be converted cannot exceed 19.9% of the Company’s issued
and outstanding shares of common stock on the modification date.
Alexander Shoghi, a director of the Company, is also a Portfolio Manager
of Oasis Management. The agreement with Oasis is subject to the
negotiation and conclusion of a definitive agreement for the
modification and final approval by the other members of the Company’s
Board of Directors and Oasis’ Investment Committee.
Stephen Berman, Chairman and Chief Executive Officer, stated: “We look
forward to being able to conclude this transaction as it will enhance
our balance sheet flexibility for the future, while also reducing our
interest costs because of the lower coupon.”
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. (NASDAQ: JAKK) 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 BIG-FIGS™, XPV®, Max Tow™ and
Friends, Disguise®, Moose Mountain®, Funnoodle®, Maui®, Kids Only!®; a
wide range of entertainment-inspired products featuring premier licensed
properties; and, C’est Moi™, a youth skincare and makeup brand. 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),
and Facebook (JAKKS
© 2017 JAKKS Pacific, Inc. All rights reserved.
Forward Looking Statements
This press release may contain “forward-looking statements” (within the
meaning of the Private Securities Litigation Reform Act of 1995) that
are based on current expectations, estimates and projections about JAKKS
Pacific's business based partly on assumptions made by its management.
These statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such statements due to numerous factors,
including, but not limited to, those described above, changes in demand
for JAKKS' products, product mix, the timing of customer orders and
deliveries, the impact of competitive products and pricing, and
difficulties with integrating acquired businesses. The “forward-looking
statements” contained herein speak only as of the date on which they are
made, and JAKKS undertakes no obligation to update any of them to
reflect events or circumstances after the date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170803005246/en/
Source: JAKKS Pacific, Inc.
Sara Rosales Montalvo, 424-268-9363