JAKKS Pacific continues to strengthen its operations.
The company revealed that it repaid in full its term loan from Benefit Street Partners this week by making a voluntary prepayment of $30.5 million using cash on hand. JAKKS says that it believes the early payoff will save approximately $1.2 million in case expense for the fiscal year.
“This represents an important milestone in achieving our goal of building a financially strong company, self-sustaining from its cash flows and well positioned for the future,” says JAKKS Pacific Chairman and CEO Stephen Berman, “It is gratifying to see the results of our focus over the past several years to strengthen all aspects of our business to improve our profitability. As a positive result of that team effort, we have generated sufficient excess cash flow that we can prepay this loan at this time.”
JAKKS Pacific continues to maintain an asset-based revolving credit line with JP Morgan Chase Bank.
In April, the company, which also owns Disguise, revealed that it beat estimates for Q1 earnings as lines based on Super Mario Bros. and Sonic the Hedgehog continued to power sales.
