Funko amends $325 million agreement to cut interest, allow prepayment

By Sarah Lizee

Olympia, Wash., March 8 – Funko, Inc. said Funko Acquisition Holdings, LLC, Funko Holdings LLC, Funko, LLC and Loungefly, LLC amended their financing agreement comprised of a $225 million term loan facility and a $100 million asset-based revolving credit facility to reduce interest margins and allow for a $13 million term loan prepayment, according to an 8-K filing with the Securities and Exchange Commission.

The amendment was completed on Wednesday with PNC Bank, NA as administrative agent and Cerberus Business Finance, LLC as collateral agent.

The interest rate margin for the term loan was reduced to Libor plus 650 basis points from 725 bps and the interest rate margin on the revolver was reduced to Libor plus 175 bps from 250 bps.

Under the amendment, the company used $13 million of excess availability under the revolver to pay down its term loan balance to further reduce interest expense going forward.

Also as part of the amendment, there is a 1% premium on prepayments under both the term loan and revolver for 180 days after the effective date of the amendment, and a $20 million increase to the borrowing base under the revolver.

Funko is a Lynnwood, Wash.-based company that manufactures licensed pop culture toys.

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