Iconix to repay $362 million notes, term loan via sale of brand stake

By Susanna Moon

Chicago, May 10 – Iconix Brand Group, Inc. plans to pay down about $362 million of notes and term loans using proceeds of an asset sale.

The repayment includes a mandatory payment of about $152 million of the company's senior secured notes issued under a securitization facility and all of its $210 million outstanding senior secured term loan, according to a press release.

Iconix said it has entered into a definitive agreement to sell its interest in the Peanuts and Strawberry Shortcake brands to DHX Media Ltd. for $345 million in cash.

Proceeds for the repayment also will come from balance sheet cash.

“One of our strategic objectives has been to de-lever and strengthen our balance sheet,” John Haugh, chief executive officer of Iconix, said in the company press release. “This sale aligns with this objective.

“As we monetize the value we have created in our entertainment business, we can reduce our debt and pay down a term loan that is expensive and highly restrictive.”

The company is a New York-based owner, licenser and marketer of consumer brands.

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