Iconix Brand Group, Inc.
) has priced its 1.50% convertible senior subordinated notes,
which were issued last week. However, Iconix has increased the
size of the private offering to $350 million from $325 million.
The company expects net proceeds of about $342 million from the
In addition, Iconix will offer the initial purchaser of the
notes to buy up to additional $50 million aggregate principal
amount of notes within 30 days. If the option is fully exercised,
Iconix expects the net proceeds to be approximately $391 million
from the offering.
Iconix expects to utilize the net proceeds to repurchase about
3 million of its shares for approximately $69 million. Also, the
company can use the proceeds to fund the cost of a convertible
note hedge transaction and a warrant transaction and for general
corporate purposes, such as investments or acquisition of new
brands or additional share repurchases.
Since Jan 1, 2013, Iconix has repurchased approximately 2.6
million shares for approximately $62.0 million. Last month,
Iconix announced a new share repurchase program to repurchase up
to $300 million of its common stock over a three-year period.
Iconix has a diversified portfolio of brands. Iconix builds
its brand portfolio by acquiring new brands, entering into joint
ventures or other partnerships, each of which enhances the
company's brand management expertise and existing
Most recently in February, Iconix acquired the renowned
lifestyle brand Lee Cooper for $72 million to strengthen its
brand portfolio and to expand in important international markets,
which now account for 33% of its overall business. Iconix has
also 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, which will help Iconix to expand its retail
footprint in the U.S. and Canada. Again, in early-Dec 2012, the
company added sports apparel and footwear brand, Umbro from its
) to further strengthen its diversified portfolio.
Currently the stock carries a Zacks Rank #3 (Hold). Other
favorable stocks in the consumer discretionary sector worth
Skechers Usa Inc
Michael Kors Holdings Ltd
), both of them holding a Zacks Rank #1 (Strong Buy).
ICONIX BRAND GP (ICON): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
NIKE INC-B (NKE): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis
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