Iconix Brand announces closing of convertible senior subordinated notes
21 Jun '07
1 min read
Iconix Brand Group Inc announced the closing of its offering of $287.5 million aggregate principal amount of 1.875% Convertible Senior Subordinated Notes due 2012 in an offering pursuant to Rule 144A under the Securities Act of 1933, as amended.
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 offering expenses.
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.
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