Iconix plans $325 million five-year convertibles to yield 1.25%-1.75%, up 27.5%-32.5%

By Rebecca Melvin

New York, March 11 - Iconix Brand Group Inc. plans to price $325 million of five year convertible senior notes after the market close Tuesday that were talked to yield 1.25% to 1.75% with an initial conversion premium of 27.5% to 32.5%, according to market sources.

The Rule 144A deal has a $50 million greenshoe and is being sold via bookrunner Barclays.

The bonds are non-callable with no puts. There is contingent conversion if shares rise to 130% of the conversion price.

Proceeds are earmarked to fund the repurchase of up to $75 million of common stock concurrently with the offering and to fund the cost of a call spread aimed at reducing potential dilution upon conversion and for general corporate purposes, including acquisitions and share repurchase programs.

Since Jan. 1, Iconix has repurchased about 2.6 million shares of common stock for about $62 million in aggregate.

New York-based Iconix is a consumer brands marketing company. It has an existing 2.5% convertible due 2016.

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