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|Candie's, Inc. Announces $20 Million Private Placement of Asset-Backed Securities|
|NEW YORK, Aug 21, 2002 (BUSINESS WIRE) -- Candie's, Inc. (NASDAQ:CAND)
("Candie's") announced today that a subsidiary has issued $20 million of
asset-backed securities in a private placement.
The notes, which are rated Baa3 by Moody's Investors Service, were issued by IP
Holdings LLC, an indirect wholly owned subsidiary of Candie's, and were secured
by intellectual property assets. The notes have a 7-year term with a fixed
interest rate of 7.93%. Candie's intends to use the proceeds distributed to it
by the subsidiary to reduce its existing revolving credit indebtedness and to
fund its expansion.
UCC Capital Corporation acted as structuring agent and the notes were privately
placed by Bank of America Securities LLC acting as placement agent.
Neil Cole, CEO and President of Candie's said, "We are extremely pleased with
the completion of this financing. It emphasizes the commercial strength of our
powerful brands and improves our balance sheet, and leaves additional
availability to borrow against more traditional assets such as inventory and
accounts receivable. This capital will provide a solid foundation to support our
plans for growth."
About Candie's, Inc.
Candie's Inc. is a leading designer and marketer of young women's footwear,
apparel and accessories under the Candie's and Bongo brands. The Company
distributes its products through department and specialty stores nationwide, as
well as through company-owned stores, its website and specialty stores
internationally. Additionally, the Candie's brand is licensed for the
manufacture, sale and distribution of apparel, handbags, eyewear, sunglasses,
fragrances and watches, and the Bongo brand is licensed for handbags, eyewear
and kids apparel. Candie's also arranges for the manufacture of footwear
products for mass market and discount retailers under the private label brand of
the retailer or other trademarks owned or licensed by Candie's. Candie's Inc.
operates www.candies.com. For investor information please visit the corporate
web site at www.candiesinc.com.
Forward Looking Statement Disclosure
The statements which are not historical facts contained in this press release
are forward looking statements that involve a number of known and unknown risks,
uncertainties and other factors all of which are difficult or impossible to
predict and many of which are beyond the control of the Company, which may cause
the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by such forward looking statements. Such factors include, but are not
limited to the risks detailed in the Company's Securities and Exchange
Commission filings, and uncertainty associated with the impact on the company in
relation to recent events discussed in the Company's form 10-K for fiscal 2002.
Readers are cautioned not to place undue reliance on these forward-looking
CONTACT: Candies, Inc.
Neil Cole, 212/730-0030
Richard Danderline, 914/769-8600
Integrated Corporate Relations, Inc.
James Palczynski, 203/222-9013
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