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Iconix buys back $105 million of 1.5% convertibles for cash, stock
New York, June 13 – Iconix Brand Group, Inc. agreed to exchange $104.95 million of its 1.5% senior subordinated notes due 2018 for $35.2 million in cash and 6.8 million shares.
The exchanges were privately negotiated with holders of the convertibles.
Part of the number of shares to be issued may be adjusted using a number of factors, including the volume-weighted average price of the company’s stock during the term of the agreements and limitations imposed by a minimum share trading price on any trading day.
The number of shares to be issued may rise to 8,127,264, according to an 8-K filing with the Securities and Exchange Commission.
Accrued interest is included in the cash payment.
Iconix stock closed at $7.71 on Friday.
“We are very pleased to have negotiated the opportunistic repurchase of a portion of our outstanding convertible notes at what we believe to be an attractive discount, Dave Jones, chief financial officer of Iconix, said in a news release.
“Given the repurchase price of the notes, we were able to retire a future debt obligation for significantly less than its face amount. This debt reduction, combined with the issuance of equity, allows us to enhance our financial flexibility and fulfills one of our principal goals of proactively reducing our leverage over time.”
Iconix had $400 million of the convertibles outstanding before the agreements.
The company is a New York-based owner, licenser and marketer of consumer brands.
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