NEW YORK, June 20 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc.
(Nasdaq: ICON) today announced the closing of its offering of $287.5 million
aggregate principal amount of 1.875% Convertible Senior Subordinated Notes due
2012 (the "Notes") in an offering pursuant to Rule 144A under the Securities
Act of 1933, as amended (the "Securities Act"). The Company recently had
announced the pricing of $250 million aggregate principal amount of the Notes,
subsequent to which, in connection with the closing, the initial purchasers
exercised in full their option to acquire an additional $37.5 million of the
Notes to cover over-allotments.
The net proceeds to Iconix from the offering were approximately $280
million, after deducting the initial purchasers' discounts and estimated
Iconix used approximately $38.8 million of the net proceeds to fund the
net cost of convertible note hedge and warrant transactions that it entered
into with affiliates of the initial purchasers. These transactions are
intended to offset Iconix' exposure to potential dilution upon conversion of
the Notes by increasing the effective conversion price to Iconix from $27.56
to $42.40 and the effective conversion premium from 30% to 100%, based on the
last reported sale price of Iconix stock of $21.20 per share on the NASDAQ
Global Select Market on June 14, 2007.
Iconix plans to use the remaining net proceeds from the note offering to
invest in or acquire new brands through mergers, stock or asset purchases
and/or other strategic relationships, although it has no present commitments
or agreements with respect to any such investment or acquisition, and for
general corporate purposes.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Iconix to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Important factors
that could cause actual results to differ materially from the results
expressed or implied in such forward looking statements include the risk that
the notes offering is not timely consummated or is not consummated at all.
Additional discussion of factors that could cause actual results to differ
materially from management's projections, estimates and expectations is
contained in Iconix' Annual Report on Form 10-K for the fiscal year ended
December 31, 2006 and the other documents Iconix files with the SEC from time
to time. Iconix undertakes no duty to update its forward-looking statements.
Chief Financial Officer
Iconix Brand Group, Inc.
SOURCE Iconix Brand Group, Inc.
/CONTACT: Warren Clamen, Chief Financial Officer of Iconix Brand Group,
/Web site: http://iconixbrand.com /
CO: Iconix Brand Group, Inc.
ST: New York
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1747 06/20/2007 12:21 EDT http://www.prnewswire.com