NEW YORK, March 7, 2016 /PRNewswire/ -- Iconix Brand
Group, Inc. (NASDAQ: ICON) ("Iconix" or the "Company") today
announced that it has entered into a new five-year $300 million senior secured term loan credit
facility provided by credit funds managed by affiliates of Fortress
Investment Group LLC (NYSE: FIG, "Fortress").
Under the terms of the credit agreement through which the new
term loan is provided, the proceeds of the loan must be used to
finance the Company's repayment of its 2.50% convertible senior
subordinated notes due June 2016 (the
"2016 Notes"). The new term loan will bear interest at LIBOR+10%
per annum, payable quarterly with a 1.50% floor on LIBOR.
"We are pleased to have successfully secured this new capital,
which shows the confidence that Fortress has in our underlying
business," said Dave Jones, Chief
Financial Officer of Iconix, "With the refinancing path for the
2016 converts now in place, we look forward to a continued focus on
our core business; including the growth of our worldwide brand
management platform."
Reflecting current credit market conditions, the Company expects
to incur an additional $9 million in
interest expense and amortization of financing fees from what was
previously forecasted in its guidance for the full year 2016.
The Company will provide updated guidance for 2016 when it reports
its fourth quarter and full year 2015 financial results, consistent
with the Company's undertaking to update its guidance as stated in
its press release furnished in its report on Form 8-K on
February 18, 2016.
The Company expects the transaction to close within 30 days.
Funding is subject to the satisfaction of certain conditions
precedent, including the establishment of certain cash management
arrangements, the depositing into an escrow account by the lenders
of the net proceeds and several customary conditions
precedent.
In connection with the financing of the new term loan,
Guggenheim Securities, LLC is acting as financial advisor to Iconix
and White & Case LLP is acting as the Company's legal advisor.
Kirkland & Ellis LLP is acting as legal advisor to
Fortress.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a growing
portfolio of consumer brands including: CANDIE'S (R), BONGO (R),
JOE BOXER (R), RAMPAGE (R), MUDD
(R), MOSSIMO (R), LONDON FOG (R),
OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL
VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), SHARPER IMAGE (R), UMBRO (R),
LEE COOPER (R), ECKO UNLTD. (R),
MARC ECKO (R), ARTFUL DODGER and
STRAWBERRY SHORTCAKE (R). In addition, Iconix owns interests in the
MATERIAL GIRL (R), PEANUTS (R), ED
HARDY (R), TRUTH OR DARE (R), MODERN AMUSEMENT (R), BUFFALO
(R), NICK GRAHAM (R) and PONY (R)
brands. The Company licenses its brands to a network of leading
retailers and manufacturers that touch every major segment of
retail distribution from the luxury market to the mass market in
both the U.S. and worldwide. Through its in-house business
development, merchandising, advertising and public relations
departments, Iconix manages its brands to drive greater consumer
awareness and equity.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements within the meaning of the
federal securities laws. Such forward-looking statements include
projections regarding the Company's beliefs and expectations about
future performance and, in some cases, may be identified by words
like "anticipate," "assume," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "potential,"
"predict," "project," "future," "will," "seek" and similar terms or
phrases. These statements include, among others, statements
relating to additional information that may require the Company to
restate further the financial statements and other financial data
in the periods impacted by the restatement and/or additional
historical periods. These statements are based on the Company's
beliefs and assumptions, which in turn are based on currently
available information. Forward-looking statements involve known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those contained in any forward-looking
statement and could harm the Company's business, prospects, results
of operations, liquidity and financial condition and cause its
stock price to decline significantly. Many of these factors are
beyond the Company's ability to control or predict. Important
factors that could cause the Company's actual results to differ
materially from those indicated in the forward-looking statements
include, among others: the ability of the Company's licensees to
maintain their license agreements or to produce and market products
bearing the Company's brand names, the Company's ability to retain
and negotiate favorable licenses, the Company's ability to meet its
outstanding debt obligations and the events and risks referenced in
the sections titled "Risk Factors" in the Company's Annual Report
on Form 10-K for the year ended December 31,
2014 and subsequent Quarterly Reports on Form 10-Q and in
other documents filed or furnished with the Securities and Exchange
Commission. These forward-looking statements are made only as of
the date hereof, and, except as required by applicable law, the
Company undertakes no obligation to update or revise publicly any
forward-looking statements.
Contact Information:
Investors
Jaime Sheinheit
Iconix Brand Group
212.730.0030
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SOURCE Iconix Brand Group, Inc.