Iconix Brand announces $300 million term loan
Iconix Brand Group, Inc. announced Monday that it has entered a five-year $300 million senior secured term loan credit facility provided by credit funds managed by affiliates of Fortress Investment Group LLC.
Under the terms of the agreement, the proceeds of the loan must be used to finance Iconix’s repayment of its 2.5% convertible senior subordinated notes that are due in June 2016. The new term loan will bear interest at LIBOR+10% per annum, payable quarterly with a 1.50% floor on LIBOR.
In addition, Iconix expects to incur $9 million in interest expenses and amortization of financing fees. The company will provide updated guidance for 2016 when it reports its fourth quarter and full year 2015 results.
"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."
The transaction is expected to close within 30 days.
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