01:57 PM EDT, 03/12/2024 (MT Newswires) -- Jakks Pacific ( JAKK ) will redeem all of its series A senior preferred shares for $20 million in cash and 571,295 common shares worth $15 million, the company said Tuesday.

With the negotiated redemption, the company will remove the last debt-related security issued as part of its 2019 restructuring.

"The price represents a discount of $4.6 million to the contractual liquidation premium and will eliminate $1.6 million in preferred dividends over the next 12 months," Jakks said.

The cash component was funded with cash on hand, Jakks said. The redemption will eliminate approximately $29.9 million of preferred stock derivative liability and roughly $6 million of preferred stock accrued dividends, as of Dec. 31, 2023, from its balance sheet.

The company's shares jumped 9.7% in recent trading.

Price: 25.86, Change: +2.28, Percent Change: +9.67