Iconix Brand Group, Inc. (Nasdaq: ICON), announced that it has entered into separate, privately negotiated exchange agreements with certain holders of approximately $105 million in principal amount of the Company's outstanding 1.50% Convertible Senior Subordinated Notes due March 2018 (the "Notes"). Prior to these transactions, the principal amount of the Notes outstanding was $400 million. Pursuant to these agreements, the Company may retire up to approximately $105 million in aggregate principal amount of the Notes in exchange for aggregate cash payments of up to approximately $35.2 million, and approximately 6.8 million shares (the "Shares") of the Company's common stock, par value $0.001 per share (the "Common Stock"). The final number of a portion of the Shares may be adjusted based on a number of factors, including, among others, the volume weighted average price of the Common Stock during the term of the agreements and limitations imposed by a minimum share trading price on any trading day.
Dave Jones, CFO of Iconix, commented "We are very pleased to have negotiated the opportunistic repurchase of a portion of our outstanding convertible notes at what we believe to be an attractive discount. Given the repurchase price of the notes, we were able to retire a future debt obligation for significantly less than its face amount. This debt reduction, combined with the issuance of equity, allows us to enhance our financial flexibility and fulfills one of our principal goals of proactively reducing our leverage over time. We believe these transactions improve our ability to create long-term shareholder value."
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.
