Clothing brand licensing company
Iconix Brand Group Inc.
) recently announced the pricing of senior notes aggregating $275
million. The notes were issued by Iconix's subsidiaries in a
private offering under its existing securitization program. This
offering is just an extension of the company's $250 million
offering announced last week.
These notes carry an interest rate of 4.352% and will mature
in 2020. Interest payments will start from Jul 25 and will be
paid quarterly. The notes offering will be closed on Jun 21 and
Iconix expects net proceeds from the note offering to be
approximately $265 million.
Iconix's subsidiaries will transfer the net proceeds from the
notes offering to Iconix and the company will in turn use it for
general corporate purposes, share repurchases, redemption of
securities, acquisitions, working capital needs and capital
Notably, in the last six months, 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 late-Feb 2013, Iconix acquired the renowned lifestyle brand
Lee Cooper for $72 million in cash through the company's
Luxembourg subsidiary, Iconix Luxembourg Holdings Sarl and
strengthened its portfolio, Earlier in the same month, Iconix
formed a joint venture with Buffalo International ULC to acquire
a 51% interest in the latter's Buffalo David Bitton brand for
$76.5 million in cash. In early-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 #1 (Strong Buy). Other stocks in the
consumer discretionary sector that are performing well and are
therefore worth considering include
) which holds a Zacks Rank #1 (Strong Buy) and
Joe's Jeans Inc
) which carries a Zacks Rank #2 (Buy).
HANESBRANDS INC (HBI): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
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