Iconix Brand Group plans to launch a new $1.1 billion securitized financing program, the company said today.
The initial deal will comprise $500 million of senior secured term notes and $100 million of variable funding notes.
The securitized financing program will allow for the issuance, based on the initially securitized assets, of up to a maximum of an additional $500 million of senior secured term notes depending on market and other conditions. The total borrowing capacity is up to $1.1 billion.
The net proceeds of the new facility will be used to finance the company's pending purchase of the Umbro brand, to repay outstanding debt under the firm's existing revolving credit facility and ABS, and for general corporate purposes, including potential acquisitions and/or share repurchases. The new facility is expected to close during the 4Q12.
Iconix Brand group owns an licences a number of consumer brands that include Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, Mossimo, London Fog, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Zoo York, Ed Hardy and Sharper Image.