Iconix Cuts Debt By $362 Million After Selling Entertainment Business For $345 Million

By Ciara Linnane Markets MarketWatch Pulse

Iconix Brand Group Inc. , owner of brands including Candie's, Joe Boxer, and Mudd among others, said Monday it has reduced its debt by $362 million after completing the sale of its entertainment business for $345 million in cash. The sale included the company's 80% interest in the Peanuts brand and 100% stake in the Strawberry Shortcake brand. The company used the proceeds of the deal plus cash on hand to pay off the $210 million outstanding balance of its senior secured term loan and mandatory payment of about $152 million of senior secured notes issued under its securitization facility. Iconix now has debt of about $828 million. "In a little more than one year, we have reduced our debt by over $650 million and improved our leverage by approximately two turns," Chief Executive John Haugh said in a statement. Shares were not yet active premarket, but are down 26% in 2017, while the S&P 500 has gained 8%.

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