By Kenneth Lim
Boston, June 15 - Iconix Brand Group Inc. priced $250 million of five-year convertible senior subordinated notes near the cheap end of talk on Thursday to yield 1.875% with an initial conversion premium of 30%.
The convertibles were offered at par. The deal was talked at a coupon of 1.5% to 2% and an initial conversion premium of 30% to 35%.
There is an over-allotment option for a further $37.5 million.
Merrill Lynch and Lehman Brothers were the bookrunners of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is 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.
| Issuer: | Iconix Brand Group Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunners: | Merrill Lynch and Lehman Brothers
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | June 30, 2012
|
| Coupon: | 1.875%
|
| Price: | Par
|
| Yield: | 1.875%
|
| Conversion premium: | 30%
|
| Conversion price: | $27.56
|
| Conversion ratio: | 36.2845
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1.5%-2%, up 30%-35%
|
| Pricing date: | June 14, after the close
|
| Settlement date: | June 20
|
| Distribution: | Rule 144A
|
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