Iconix talks $250 million five-year convertibles at 1.5%-2%, up 30%-35%, to price Thursday after close

By Kenneth Lim

Boston, June 13 - Iconix Brand Group Inc. plans to price $250 million of five-year convertible senior subordinated notes on Thursday after the market closes, talked at a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%.

The convertibles are offered at par.

There is an over-allotment option for a further $37.5 million.

Merrill Lynch and Lehman Brothers are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable and may not be put.

There will be a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

There is a net-share settlement feature.

Iconix, a New York-based brand management company, said the proceeds of the deal will be used to fund convertible note hedge and warrant transactions and to invest in or acquire new brands.

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