NEW YORK, July 3, 2017 /PRNewswire/ -- Iconix Brand Group,
Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced a
substantial reduction of its debt in conjunction with the
completion of the previously reported sale of its entertainment
segment for $345 million in cash,
subject to customary working capital adjustments. The sale of
the entertainment segment included the Company's 80% interest in
the Peanuts brand and 100% interest in the Strawberry Shortcake
brand.
The net proceeds from this transaction plus additional cash on
the Company's balance sheet were used to pay down approximately
$362 million principal amount of
debt. This includes the full extinguishment of the
$210 million outstanding balance of
the Company's Senior Secured Term Loan and a mandatory payment of
approximately $152 million of the
Company's Senior Secured Notes issued under the Company's
securitization facility. Following these transactions, the
Company's total debt is approximately $828
million in principal amount, which includes approximately
$433 million of Senior Secured Notes,
a $100 million Variable Funding Note,
and approximately $295 million of
2018 Convertible Notes.
John Haugh, Chief Executive
Officer of Iconix, said, "Improving the balance sheet has been a
key objective of our Company, and with the entertainment sale
complete we have made significant progress on this objective. In a
little more than one year, we have reduced our debt by over
$650 million and improved our
leverage by approximately two turns."
The entertainment segment's historical results will be reported
in Iconix' consolidated financial statements as a discontinued
operation and in subsequent periods, Iconix' consolidated financial
statements will no longer reflect the assets, liabilities, results
of operations or cash flows attributable to the entertainment
segment.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a
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), UMBRO (R), LEE COOPER (R), ECKO UNLTD.
(R), MARC ECKO (R), and ARTFUL DODGER. In addition,
Iconix owns interests in the MATERIAL GIRL (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
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 are based on the Company's beliefs and
assumptions, which in turn are based on information available as of
the date of this press release. 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, 2016 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:
Jaime Sheinheit
Iconix Brand Group
jsheinheit@iconixbrand.com
212.730.0030
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SOURCE Iconix Brand Group, Inc.