JAKKS said it plans to give the initial buyer of the senior notes a 30-day option to buy up to 11.25 million in principal amount of additional notes. The company plans to sue the proceeds of the offering to repurchase all or a part of the $30 million aggregate principal amount of its 4.5% convertible senior notes due in 2014. JAKKS will use up to $25 million of the proceeds to fund a stock repurchase transaction with the initial buyer.
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TheStreet Ratings team rates JAKKS PACIFIC INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate JAKKS PACIFIC INC (JAKK) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: