Hit reaches agreement with lenders

The deal will waive a scheduled covenant test on the firm's $579 million debt.
Author:
Publish date:
Social count:
0
23_HiT_logo_RGB_Large_pv.jpg

The firm has been negotiating with lenders to restructure or amend its credit facilities for the past few months.

It has reached a "forbearance agreement" that essentially waives testing the company's financial covenants. The test was scheduled to take place this week.

Covenants are terms written into lending documents specifying minimum levels of cash-flow and interest coverage or maximum levels of leverage and capital expenditure. If companies breach covenants, it gives lenders the opportunity to reset lending terms or ask for their money back.

Debt negotiations will now continue, with the preferred option being for Hit to reach an "amend and extend" arrangement with lenders, designed to give companies breathing room under their debt covenants and to extend the debt maturities.

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.