Loading, Please Wait...
- New Terms Lower Interest Costs and Lengthen Maturity -
EVERETT, Wash., Sept. 12, 2018 (GLOBE NEWSWIRE) -- Funko, Inc. (Nasdaq: FNKO) (“Funko” or “the Company”), a leading pop culture consumer products company, announced today that certain of its subsidiaries entered into a commitment letter on September 7, 2018 with PNC Bank, National Association and PNC Capital Markets LLC for new senior secured credit facilities (“Credit Facilities”). Additionally, JPMorgan Chase Bank, N.A. will serve in Joint Lead Arranger and Syndication Agent capacities for the Credit 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 have a maturity of five years from the closing date of the Credit Facilities. Borrowings under the Credit Facilities are anticipated to initially accrue interest at a rate per year equal to, at the Company’s option, either (i) LIBOR plus an applicable margin of 3.25%, or (ii) 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.”
“The new facilities are expected to help us continue to grow our business and result in a meaningful reduction to our annual interest costs,” commented Russell Nickel, Funko’s CFO.
The closing of the Credit Facilities will be subject to customary conditions precedent, including the negotiation and execution of final documentation. The Credit Facilities are expected to be entered into and funded shortly after the date hereof; however, there can be no guarantee that the Credit Facilities will be consummated on the terms contemplated in the commitment letter described in this press release or at all. For additional details refer to the Company’s Form 8-K filed concurrently with the Securities and Exchange Commission.
Headquartered in Everett, Washington, Funko is a leading pop culture consumer products company. 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. Learn more at https://funko.com/, and follow us on Twitter (@OriginalFunko) and Instagram (@OriginalFunko).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding entry into a final agreement for the Credit Facilities and the timing of closing of the Credit Facilities, the underlying trends in our business, growing demand for our products, our potential for growth, reduction in annual interest costs, our financial strength, and future opportunities. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: we may not enter into a final agreement for the Credit Facilities in the timeframe expected or at all; our ability to maintain and realize the full value of our license agreements; the ongoing level of popularity of our products with consumers; changes in the retail industry and markets for our consumer products; our ability to maintain our relationships with retail customers and distributors; our ability to compete effectively; fluctuations in our gross margin; our dependence on content development and creation by third parties; our ability to develop and introduce products in a timely and cost-effective manner; our ability to obtain, maintain and protect our intellectual property rights or those of our licensors; potential violations of the intellectual property rights of others; our ability to attract and retain qualified employees and maintain our corporate culture; risks associated with our international operations; changes in U.S. tax law; foreign currency exchange rate exposure; the possibility or existence of global and regional economic downturns; our dependence on vendors and outsourcers; risks relating to government regulation; risks relating to litigation, including products liability claims and securities class action litigation; any failure to successfully integrate or realize the anticipated benefits of acquisitions or investments; reputational risk resulting from our e-commerce business and social media presence; risks relating to our indebtedness and our ability to secure additional financing; the potential for our electronic data to be compromised; the influence of our significant stockholder, ACON, and the possibility that ACON’s interests may conflict with the interests of our other stockholders; risks relating to our organizational structure; volatility in the price of our Class A common stock; and the potential that we will fail to establish and maintain effective internal control over financial reporting. These and other important factors discussed under the caption “Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2017 and our quarterly report on Form 10-Q for the three and six months ended June 30, 2018 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Sean McGowan, Liolios
Cody Slach, Liolios
Director of Public Relations