Iconix Brand Group Inc.
) subsidiaries have closed the notes offering aggregating $275
million under its existing securitization program. These notes
carry an annual interest rate of 4.352% and will mature in 2020.
Interest payments will be paid quarterly starting from Jul
Initially, this clothing brand licensing company had announced
an offering of $250 million notes. Iconix expects net proceeds
from the note offering to be approximately $265 million. Its
subsidiaries will use the proceeds for general corporate
purposes, share repurchases, redemption of securities,
acquisitions, working capital needs and capital expenditures.
Of late, Iconix has been aggressively acquiring brands and
entering into joint ventures to strengthen its portfolio. Most
recently, in May 2013, Iconix acquired the remaining 49% interest
in IP Holdings Unltd LLC ("IPHU") that manufactures and markets
fashion and lifestyle products in the U.S. and internationally.
Iconix now owns brands such as Ecko Unltd. and Marc Ecko Cut
& Sew. Iconix had previously acquired a 51% stake in IP
Holdings Unltd LLC in 2009.
In Feb 2013, Iconix acquired the renowned lifestyle brand Lee
Cooper for $72 million and a 51% stake in the Buffalo David
Bitton brand for $76.5 million. In Dec 2012, Iconix
acquired the renowned football brand Umbro from
) in order to further strengthen its portfolio with an iconic
We remain impressed with Iconix's strategic acquisitions and
consistent expansion of licensing agreements. Iconix expects to
explore additional opportunities and enhance its portfolio with
more iconic brands in the upcoming quarters. Iconix expects to
deliver over 20% revenue and earnings per share growth for
Iconix holds a Zacks Rank #2 (Buy). Other stocks in the
consumer discretionary sector that are worth considering include
Brown Shoe Inc
), which holds a Zacks Rank #1 (Strong Buy) and
), which carries a Zacks Rank #2.
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