=Iconix Brand (ICON) : Starter collection on Amazon

Iconix Brand announces 'the wind down of the DanskinNow brand at Walmart, the amendment of its senior secured term loan, a new exclusive Starter collection on Amazon, and the dismissal of pending securities class action lawsuits'

• Co has been informed by Walmart that the DanskinNow license, which is a diffusion of the Danskin brand, will not be renewed beyond January 2019.
  • As a result, royalty revenue for the Danskin brand is estimated to decline ~$15.5 million in 2018.
• Due to certain developments, including the transition of the Danskin brand, the Company forecasted that it would unlikely be in compliance with certain of its financial debt covenants in 2018.
  • As a result, the Company recently engaged in discussions with its lenders to provide relief under its financial debt covenants and entered into an amendment of its senior secured term loan facility.
  • As part of those negotiations, the Company agreed to reduce the size of the credit facility by ~$75 million to $225 million.
• Starter is now available on Amazon exclusively to tens of millions of Prime members at www.amazon.com/starter.
• The company expects to report third quarter 2017 financial results by early next week.