Iconix Brand Group Inc. announced it has taken significant steps to strengthen its balance sheet and enhance its financial flexibility. The company has entered into a new five-year $300 million senior secured term loan facility with Deutsche Bank AG. The new $300 million term loan will bear interest at LIBOR + 7.0 percent per annum. Proceeds will be used to repay the company’s convertible senior subordinated notes due March 2018 (the “2018 Notes”).
John Haugh, chief executive officer of Iconix, commented, “Strengthening our balance sheet has been a key priority for Iconix, and we are pleased that the financing announced today achieves this objective. In just over a year, we have repaid over $650 million of debt, reducing our leverage ratio by approximately two turns. Because of our improved balance sheet, we have been able to secure financing at more favorable terms than in the past. The interest rate on the new term loan is 300 basis points per annum lower than our previous term loan. Additionally, it provides us with greater financial flexibility and liquidity. This loan demonstrates the confidence the investment community has in Iconix and our go forward strategy.”
In connection with the financing of the new term loan, Guggenheim Securities LLC is acting as sole lead arranger and White & Case is acting as the company’s legal advisor.
Iconix Brand Group owns: Candie’s, Bongo, Joe Boxer, Rampage, Mudd, Mossimo, London Fog, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Zoo York, Umbro, Lee Cooper, Ecko Unltd., Marc Ecko and Artful Dodger. In addition, Iconix owns interests in The Material Girl, Ed Hardy, Truth Or Dare, Modern Amusement, Buffalo, Nick Graham and Pony brands.
Photo courtesy Starter
