Hasbro restates revolver for $1.25 billion maturing in 2028

By Wendy Van Sickle

Columbus, Ohio, Sept. 6 – Hasbro, Inc. and subsidiary Hasbro SA entered into an amended and restated revolving credit agreement on Tuesday for $1.25 billion of commitments, according to an 8-K filing with the Securities and Exchange Commission.

There is a potential additional incremental commitment increase of up to $500 million.

The amendment also extends the maturity to Sept. 5, 2028 from Sept. 5, 2024.

Some fees payable under the facility were also reduced, the filing noted.

Interest will be SOFR plus a margin ranging from 87.5 basis points to 162.5 bps, based on the company’s consolidated total leverage ratio

The commitment fee will range from 7 bps to 25 bps, also depending on consolidated total leverage ratio.

The facility provides for swingline borrowings of up to $50 million and the issuance of letters of credit of up to $75 million.

The agreement requires the company to maintain a consolidated interest coverage ratio of no less than 3 to 1 as of the end of any fiscal quarter and a consolidated total leverage ratio of no more than 4 to 1 at the end of the first fiscal quarter, or 3.5 to 1 at the end of the fiscal quarters thereafter until the disposition of the company’s eOne film and television business. After the disposition date, the company will be required to maintain a consolidated net total leverage ratio of 4 to 1 for the quarters ended Sept. 20 and Dec. 31; 3.75 to 1 for the first, second and fourth fiscal quarters of each year other than 2023; and 5 to 1 for the third fiscal quarter for any year other than 2023.

BofA Securities, Inc., Citibank, NA, Citizens Bank, NA, JPMorgan Chase Bank, NA and Bank of Nova Scotia are joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent, swingline lender and a letter-of-credit issuer. Citibank, JPMorgan and Scotia are co-syndication agents.

The toy and game company is based in Pawtucket, R.I.

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