SANTA MONICA, Calif.--(BUSINESS WIRE)--

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 million.

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), Twitter (@jakkstoys) and Facebook (JAKKS Pacific).

© 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.

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