Iconix Brand 2.5%, 1.5% notes convertible through end of September

By Jennifer Chiou

New York, July 1 – Iconix Brand Group, Inc. notified holders of its 2.5% convertible senior subordinated notes due 2016 and its 1.5% convertible senior subordinated notes due 2018 that they may convert their securities until Sept. 30.

The notice follows each of the notes series meeting the 130% hurdle triggering the conversion eligibility.

According to a press release, the closing price per share of the company’s common stock exceeded $39.98, which is 130% of the conversion price for the 2.5% notes, and $40.12, which is 130% of the conversion price for the 1.5% notes, in each case for at least 20 trading days during the 30 consecutive trading day period ended June 30.

Based on the current market value of the notes, Iconix said it does not anticipate a material portion of the notes to be converted.

In addition, the company has hedges for both series of notes, which effectively increase the conversion price to Iconix to $40.62 in the case of the 2.5% notes and $35.52 for the 1.5% notes.

The conversion agent is the Bank of New York Mellon Trust Co., NA (attn: Christopher Landers at 315 414-3362 or fax 732 667-9408).

Iconix is a New York-based company that owns, licenses and markets consumer brands to retailers and manufacturers. The company’s shares (Nasdaq: ICON) closed at $43.19 on July 1.

© 2015 Prospect News.
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