Iconix greenshoe fully exercised, raising convertibles to $287.5 million

By Susanna Moon

Chicago, June 20 - Iconix Brand Group, Inc. said buyers fully exercised the $37.5 million over-allotment option on its recent offering of 1.875% convertible senior subordinated notes due 2012, bringing the total raised to $287.5 million.

The convertibles were priced at $250 million on June 14 after the market closed, 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%.

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

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

Proceeds will be used for fund the convertible note hedge and warrant transactions and for general corporate purposes and for potential acquisitions.

The stock (Nasdaq: ICON) closed at $22.35 June 19.

Iconix is a New York-based brand management company.

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