Iconix Brand Group, Inc. Announces Plan to Offer $250 Million Convertible Senior Subordinated Notes
June 13 2007 - 5:01PM
PR Newswire (US)
NEW YORK, June 13 /PRNewswire-FirstCall/ -- Iconix Brand Group,
Inc. (NASDAQ:ICON) today announced its intention to offer, subject
to market and other conditions, $250 million aggregate principal
amount of Convertible Senior Subordinated Notes due 2012 (the
"Notes") in an offering pursuant to Rule 144A under the Securities
Act of 1933, as amended (the "Securities Act"), through the initial
purchasers of the Notes. Iconix also intends to grant the initial
purchasers of the notes an option to purchase up to an additional
$37.5 million aggregate principal amount of Notes solely to cover
over-allotments, if any. If certain conditions are met, the Notes
may be convertible into cash up to the principal amount of the
Notes and, with respect to any excess conversion value, into cash,
shares of Iconix common stock or a combination of cash and common
stock, at Iconix' option. The interest rate, conversion price and
other terms will be determined by negotiations between Iconix and
the initial purchasers of the Notes. Iconix intends to use a
portion of the net offering proceeds to fund a convertible note
hedge transaction and a warrant transaction. Iconix plans to use
the remaining net proceeds from the note offering to invest in or
acquire new brands through mergers, stock or asset purchases and/or
other strategic relationships, although it has no present
commitments or agreements with respect to any such investment or
acquisition, and for general corporate purposes. In connection with
the convertible note hedge and warrant transactions, the hedge
counterparties have advised Iconix that they or their affiliates
intend to enter into various derivative transactions with respect
to the common stock of Iconix, concurrently with or shortly
following pricing of the Notes. These activities could have the
effect of increasing or preventing a decline in the price of the
common stock of Iconix concurrently or following the pricing of the
Notes. In addition, the hedge counterparties or their affiliates
may from time to time, following the pricing of the Notes, enter
into or unwind various derivative transactions with respect to the
common stock of Iconix and/or purchase or sell common stock of
Iconix in secondary market transactions. These activities could
have the effect of decreasing the price of the common stock of
Iconix and could affect the price of the Notes. The convertible
note hedge transactions are intended to reduce potential dilution
to Iconix' common stock upon potential future conversion of the
Notes. This notice does not constitute an offer to sell or the
solicitation of an offer to buy securities. Any offers of the
securities will be made only by means of an offering memorandum.
Iconix' issuance of the Notes and the shares of Iconix common stock
issuable upon conversion have not been, and will not be, registered
under the Securities Act or the securities laws of any other
jurisdiction. Such securities may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements. Certain statements and information
included in this release constitute "forward-looking statements"
within the meaning of the Federal Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Iconix to be
materially different from any future results, performance or
achievements expressed or implied in such forward-looking
statements. Important factors that could cause actual results to
differ materially from the results expressed or implied in such
forward looking statements include the risk that the notes offering
is not timely consummated or is not consummated at all. Additional
discussion of factors that could cause actual results to differ
materially from management's projections, estimates and
expectations is contained in Iconix' Annual Report on Form 10-K for
the fiscal year ended December 31, 2006 and the other documents
Iconix files with the SEC from time to time. Iconix undertakes no
duty to update its forward-looking statements. Contact: Warren
Clamen Chief Financial Officer Iconix Brand Group, Inc.
212-730-0030 DATASOURCE: Iconix Brand Group, Inc. CONTACT: Warren
Clamen, Chief Financial Officer of Iconix Brand Group, Inc.,
+1-212-730-0030 Web site: http://iconixbrand.com/
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