FNKO · Funko, Inc.

Summary

Funko Acquisition Holdings, L.L.C., a subsidiary of Funko, Inc., entered into Amendment No. 5 to its credit agreement on February 13, 2026, extending the loan maturity date to December 31, 2027 and modifying financial covenants, interest rates, and repayment terms. This amendment provides the company with additional financial flexibility and cushion on certain covenant requirements through 2026 and early 2027.

Key takeaways

• Amendment No. 5 to the credit agreement was executed on February 13, 2026, extending the loan maturity date from September 17, 2026 to December 31, 2027.
• The amendment waives the minimum fixed charge coverage ratio covenant for the fiscal quarter ended December 31, 2025 and the fiscal quarters ending March 31, 2026 and June 30, 2026.
• The amendment introduces a minimum EBITDA covenant for the six-month period ending June 30, 2026 and provides additional cushion for the minimum fixed charge coverage ratio for fiscal quarters ending September 30, 2026, December 31, 2026 and March 31, 2027.
• The applicable margin on all outstanding loans increased to 450 basis points effective on the closing date of the Fifth Amendment, with subsequent increases as set forth in the Amended Credit Agreement.
• The amendment requires quarterly mandatory prepayment of revolving loans with cash and cash equivalents in excess of $50 million, with each prepayment permanently reducing revolving commitments.
• The amendment removes the 10 basis points credit spread adjustment applicable to SOFR loans and adds certain new affirmative covenants and additional events of default.