Jakks Pacific to price $75 million convertible senior notes due 2020

By Susanna Moon

Chicago, June 2 - Jakks Pacific, Inc. said it plans to issue $75 million principal amount of convertible senior notes due 2020 to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

The sale will have a 30-day option for up to $11.25 million of additional notes.

Proceeds will be used to repurchase some or all of the $39 million principal amount of Jakks' 4.5% convertible senior notes due 2014 prior to maturity.

The company also plans to apply up to $25 million of the proceeds to fund the cost of purchasing its common shares by entering into a prepaid forward share repurchase with an affiliate of the initial purchaser. Any remaining proceeds will be used for general corporate purposes, including the payment of the 2014 notes.

Malibu, Calif.-based Jakks is a toy and leisure products company.

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