$40,000,000 Senior Credit Facility
Basic Fun! is a designer, developer, manufacturer, and distributor of innovative and fun children’s toys and entertainment products. The Company owns such brands as K’nex, Uncle Milton, Playhut, Mash’ems, and Cutetitos. The company holds licenses for various products from major entertainment companies including Disney, Warner Brothers, and Nickelodeon, as well as from large toy companies like Hasbro and Mattel where they license such products as Tonka, Care Bears, My Little Pony, and others.
The toy industry faced several challenges over the last few years including, Toys R Us bankruptcies, continued consolidation of brick and mortar retailers, tariff policies towards Chinese imports, and the COVID-19 pandemic. Given this dynamic, Basic Fun wished to gain better leverage and flexibility through an asset-based senior credit facility, as opposed to the traditional cash flow facility they had in place. With the onset of Covid, the Company found the bank market to be tepid and sought out a non-bank solution.
Crystal agented a $40,000,000 asset-based, senior credit facility comprised of a $20,000,000 revolver and a $20,000,000 term loan, secured by all assets of the business.