Hasbro draws down on term loans to help finance acquisition

By Sarah Lizee

Olympia, Wash., Dec. 30 – Hasbro, Inc. borrowed the full amount under its $1 billion term loan agreement to pay a portion of its acquisition of Entertainment One Ltd., according to an 8-K filing with the Securities and Exchange Commission.

The all-cash transaction is valued at about £2.9 billion, based on the consideration of £5.60 per common share of Entertainment One.

Hasbro also expects to redeem Entertainment One’s outstanding senior secured notes and to pay off the debt outstanding under Entertainment One’s revolver, which together represent about £600 million of Entertainment One’s debt.

Hasbro entered into the $1 billion term loan agreement in September with Bank of America, NA as administrative agent. The agreement includes a three-year senior unsecured term loan facility of $400 million and a five-year senior unsecured term loan facility of $600 million.

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

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