To finance the transactions, the Company borrowed $90.0 million from Merrill Lynch Mortgage Capital Inc pursuant to a two-year secured note that bears interest at a variable rate equal to the three-month LIBOR plus 5.125 percent per annum.
The Mossimo brand is projected to generate between $20 and $25 million in 2007 royalty revenue, primarily from a license agreement with the Target Corporation, but with additional contribution from licenses in Australia, South America, Mexico and Japan.
As part of the transaction, Mossimo Giannulli, founder and chairman of Mossimo Inc, has joined Iconix as a consultant and will continue to work with the Company to build the brand domestically and internationally.
Neil Cole, Chairman and CEO of Iconix, stated, "We are thrilled to have added Mossimo to our growing portfolio of powerful brands."
"Not only does this acquisition further diversify our revenue base, but it also solidifies our relationship with Target, one of the world's leading retailers. I am confident that Mossimo will continue to grow around the world into an even stronger lifestyle brand."
marketing@alchempro.com
