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Jul 6, 2017
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Iconix closes sale on entertainment segment, reduces debt by $362 million

Published
Jul 6, 2017

Iconix Brand Group announced on Monday that it has reduced its debt with the sale of its entertainment segment to DHX Media for $345 million in cash.


Iconix Brand Group


The company first announced in May with its first quarter results that it would reduce its debt by $362 million with the sale of the entertainment segment that includes the Peanuts and Strawberry Shortcake brands.
 
The transaction includes 80% interest in the Peanuts brand and 100% interest in the Strawberry Shortcake brand, as well as the full extinguishment of the $210 million outstanding balance of Iconix’ Senior Secured Term Loan and a mandatory payment of $152 million of Iconix’ Senior Secured Notes issued under the securitization facility. Following the transaction, Iconix’ total debt is approximately $828 million, which includes $433 million in Senior Secured Notes, a $100 million Variable Funding Note, and approximately $295 million of 2018 Convertible Notes.

"Improving the balance sheet has been a key objective of our company, and with the entertainment sale complete we have made significant progress on this objective,” said CEO John Haugh. “In a little more than one year, we have reduced our debt by over $650 million and improved our leverage by approximately two turns."
 
The entertainment segment’s historical results will be reported in Iconix’ consolidated financial statement as a discontinued operation, and in subsequent periods, Iconix' consolidated financial statements will no longer reflect the assets, liabilities, results of operations or cash flows attributable to the entertainment segment.
 
Iconix said in May that the loss of sales from the entertainment segment will be offset by savings on interest payments on Iconix’ existing debt. In addition, the company reported an 11% decline in revenue to $58.7 million.

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