Business Wire

JAKKS Pacific Announces Completion of Recapitalization

Share

JAKKS Pacific, Inc. (NASDAQ: JAKK) (the “Company”) announced today that it had entered into multiple, binding definitive agreements (collectively, the “Recapitalization”) among Wells Fargo Bank, National Association (‘Wells Fargo”), Oasis Investments II Master Fund Ltd. (“Oasis”) and an ad hoc group of holders (the “Ad Hoc Group”) of the 4.875% convertible senior notes due 2020 (the “2020 Notes”) to recapitalize the Company’s balance sheet, including the extension to the Company of incremental liquidity and three-year extensions of substantially all of the Company’s outstanding debt obligations.

Stephen Berman, CEO and co-founder of the Company, thanked the various participants in the Recapitalization as well as all of the Company’s stakeholders for their strong support and patience: “We are pleased to have such great business partners, co-workers and friends supporting us in what has been an extended pathway to achieve the Recapitalization. With this transaction, we can pursue our business objectives, both near term and beyond, with new vigor and resolve. We are excited that we can now devote our full energy to those tasks.”

Andrew Axelrod, Managing Partner of Axar Capital, one of the members of the Ad Hoc Group, who will become a director of the Company in connection with the Recapitalization, congratulated the Company on the Recapitalization: “I am delighted to commend Mr. Berman and the entire management team on the execution of this transaction. We are looking forward to working with the Company on executing its business plan in the coming months and years ahead.”

As previously described in the Current Report on Form 8-K dated February 26, 2019, the Current Report on Form 8-K dated May 9, 2019 and the Current Report on Form 8-K dated June 24, 2019, the Special Committee of the Company’s Board of Directors (the “Special Committee”) engaged in discussions and negotiations with Meisheng, regarding a purchase by Meisheng of sufficient newly issued shares of the Company’s common stock such that Meisheng would own 51% of the Company’s outstanding shares, and with Oasis and the Ad Hoc Group concerning, among other things, the Meisheng proposal and extension of maturities of the Company’s convertible senior notes. Following delays in achieving the necessary approvals for the Meisheng transaction, including approvals from Chinese regulatory bodies, the Company determined that it was in its best interests to agree to and consummate the Recapitalization.

Xiaoqiang Zhao, Chairman of Meisheng, expressed his support for the Company and the Recapitalization: “Personally as a director and on behalf of Meisheng, a shareholder and a business partner, I want to say how happy I am that the Company has successfully entered into this transaction. We look forward to many years of a continued strong relationship between our two companies.”

As announced in the Current Report on Form 8-K dated June 28, 2019, the Company received a confidential non-binding expression of interest to acquire all of the shares of the Company. The Company and its advisors continue to engage in discussions with the interested party regarding the non-binding proposal and continue to furnish information to such party in connection with due diligence activities. To date, no agreements or understandings have been reached with respect to such proposal and such indicated price may also change in a final offer, if made. No assurance can be given that the ongoing discussions will result in any transaction with such party.

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 MorfBoard®, Perfectly Cute®, Squish-Dee-Lish™, TP Blaster®, 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 make-up 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), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).

©2019 JAKKS Pacific, Inc. All rights reserved

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including, without limitation, statements with respect to the effects of the Recapitalization and the Company’s future business plans and objectives. These forward-looking statements are based on current expectations, estimates and projections about the Company’s business based partly on assumptions made by its management. For example, statements included in this report regarding the terms under discussion with any party or the outcome of any such discussions are all forward-looking statements. When the Company uses words like “intend,” “anticipate,” “believe,” “estimate,” “plan,” “expect,” “would” or words of similar import, the Company is making forward-looking statements. 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 the Company’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and general economic conditions. More information about potential factors that could affect the Company and the expectations described in the forward-looking statements are included in the Company’s filings with the Securities and Exchange Commission. The Company believes that the assumptions and expectations reflected in such forward-looking statements are reasonable and are based on information available to the Company on the date hereof, but the Company cannot assure you that these assumptions and expectations will prove to have been correct or that the Company will take any action that it may presently be planning. The Company is not undertaking to publicly update or revise any forward-looking statement if it obtains new information or upon the occurrence of future events or otherwise.

Contact information

JAKKS Pacific
Rachel Griffin
RGriffin@jakks.net
424-268-9553

Gateway
Sean McGowan
smcgowan@gatewayir.com
949-574-3860

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Investment in Identity Management Grows by 45 Percent Year-Over-Year, Highlighting its Increasing Importance to Organizations Globally17.9.2019 23:00:00 EESTPress release

Optiv Security, in partnership with Momentum Cyber, has announced findings from its 2019 Security Technology Spend Insights Report, the leading barometer for evaluating technology buying trends. The report also includes Optiv’s top five technology trends and technology areas to watch, based on engagements with 7,000 Optiv clients across industries worldwide. The 2019 Security Technology Spend Insights Report examines the rise in spending on various security disciplines from 2017 to 2018: Identity Management Spending on Identity Management (IM) as a category grew by more than 45 percent Two subsets of IM saw significant individual growth as well, privileged access management (PAM) grew by 25% and Identity and Access Management (IAM) grew by over 55% Vulnerability Management and Email Security Spending on each grew by more than 30% Data Protection and Cloud Security Spending on each grew by more than 25% “While the strong spending growth on identity management is not surprising, the magni

Libelium’s IoT Technology Helps to Achieve the Sustainable Development Goals of the United Nations17.9.2019 22:00:00 EESTPress release

Following the United Nations call for the Sustainable Development Goals (SDGs), Libelium promotes IoT technology as a tool to achieve prosperity while protecting the planet. Libelium values and encourages the prioritization of sustainability goals to maximize the impact that the IoT provides for a better world. Nowadays, IoT technology is contributing to the improvement of citizens’ quality of life and companies’ competitiveness. Investing in IoT technology directly impacts in manufacturing cost reduction, better use of natural resources preservation, product quality improvement and regulatory compliance. The report published by Libelium summarizes how IoT technology works in favour of the SDGs and which projects have been deployed worldwide according to each objective. Libelium has identified the benefits that IoT technology offers for goals such as zero hunger, good health, clean water, sustainable cities, industry, climate action, life on land and life below water. The objective of

LIWEST Becomes Latest Austrian Operator to Evolve IPTV Security with Verimatrix and Ocilion17.9.2019 20:31:00 EESTPress release

IBC 2019 (#5.A59) – Verimatrix, (Paris:VMX), a global provider of security and business intelligence solutions that protect content, devices, applications and communications, today announced that LIWEST Kabelmedien has deployed Ocilion’s IPTV solutions integrated with Verimatrix security to enable more flexible and future-proof video delivery models. LIWEST joins kabelplus and Salzburg AG as the third Austrian operator to leverage the combined strengths of the partner companies in recent months. Facing a rise in streaming, LIWEST modernized its IPTV technology to stay at the forefront of a highly competitive market. The operator selected Ocilion and Verimatrix, recognizing how the partnership would essentially provide a flexible, one-stop shop solution. In addition to supporting set-top box (STB), tablet and smartphone delivery, the deployment marks a milestone for Ocilion in enabling Amazon Fire TV and Apple TV streaming. “As Austrian subscriber behaviors shift away from traditional l

Compute Express Link Consortium (CXL) Officially Incorporates; Announces Expanded Board of Directors17.9.2019 19:34:00 EESTPress release

Today, Alibaba, Cisco, Dell EMC, Facebook, Google, Hewlett Packard Enterprise, Huawei, Intel Corporation and Microsoft announce the incorporation of the Compute Express Link (CXL) Consortium, and unveiled the names of its newly-elected members to its Board of Directors. The core group of key industry partners announced their intent to incorporate in March 2019, and remain dedicated to advancing the CXL standard, a new high-speed CPU-to-Device and CPU-to-Memory interconnect which accelerates next-generation data center performance. The five new CXL board members are as follows: Steve Fields, Fellow and Chief Engineer of Power Systems, IBM; Gaurav Singh, Corporate Vice President, Xilinx; Dong Wei, Standards Architect and Fellow at ARM Holdings; Nathan Kalyanasundharam, Senior Fellow at AMD Semiconductor; and Larrie Carr, Fellow, Technical Strategy and Architecture, Data Center Solutions, Microchip Technology Inc. Chairman of the CXL Consortium, Jim Pappas, discussed the recent developmen

Community Welcomes Two New Premium Media Brands17.9.2019 19:00:00 EESTPress release

Community, powered by Xandr, welcomes two additional premium media brands; Bloomberg and Vudu, building upon previously announced partners. Current Community partners include, WarnerMedia’s CNN, TNT, TBS, truTV, B/R Live, Otter Media, and Warner Bros., as well as A+E Networks, AMC Networks, Cheddar, VICE, Hearst Magazines, Newsy, Philo, Tubi, and Xumo. Built on Xandr’s powerful technology and consumer insights, Community simplifies and enhances an advertiser’s connection to unique audiences. Community enables advertisers to reach their audiences at scale in a brand-safe, privacy-protected, and premium video environment. “Community is successful because of its partners and the premium content they produce every day,” said Brian Lesser, CEO of Xandr. “Together with our Community partners, we are helping advertisers reach interested consumers on whatever device they watch their favorite show. With Xandr’s powerful technology and unique consumer insights, combined with the best content in

EP Henry Introduces World’s First Precast Products Manufactured with CO2-Cured Solidia Concrete17.9.2019 18:40:00 EESTPress release

EP Henry, the leading manufacturer of unit concrete products in North America, in collaboration with Solidia Technologies®, a cement and concrete technology start-up, has introduced the world’s first products made with low-carbon Solidia Concrete™. Using LafargeHolcim’s Solidia Cement™ as its base, which requires lower temperatures during production and thereby emits less carbon, Solidia Concrete products are cured with CO2 instead of water, reducing their overall carbon footprint up to 70% compared to traditional concrete. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190917005888/en/ EP Henry's CO2-cured Solidia Concrete™ pavers made from low-carbon Solidia Cement™ at the Elsmere, Delaware Fire Company (Photo: Business Wire) “Our reputation as the leader in the industry has led to some significant partnerships in new product and technology development,” said EP Henry President Eric Long. “This most recent—and perhaps most

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom