Candie's, Inc. Announces $20 Million Private Placement of Asset-Backed Securities.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 21, 2002 Candie's, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CAND) ("Candie's") announced today that a subsidiary has issued $20 million of asset-backed securities in a private placement. The notes, which are rated Baa3 by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , were issued by IP Holdings LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , an indirect wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Candie's, and were secured by intellectual property assets. The notes have a 7-year term with a fixed interest rate of 7.93%. Candie's intends to use the proceeds distributed to it by the subsidiary to reduce its existing revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. indebtedness and to fund its expansion. UCC An abbreviation for the Uniform Commercial Code. Capital Corporation acted as structuring agent and the notes were privately placed by Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Securities LLC acting as placement agent. Neil Cole, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President of Candie's said, "We are extremely pleased with the completion of this financing. It emphasizes the commercial strength of our powerful brands and improves our balance sheet, and leaves additional availability to borrow against more traditional assets such as inventory and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . This capital will provide a solid foundation to support our plans for growth." About Candie's, Inc. Candie's Inc. is a leading designer and marketer of young women's footwear, apparel and accessories under the Candie's and Bongo brands. The Company distributes its products through department and specialty stores nationwide, as well as through company-owned stores, its website and specialty stores internationally. Additionally, the Candie's brand is licensed for the manufacture, sale and distribution of apparel, handbags, eyewear, sunglasses, fragrances and watches, and the Bongo brand is licensed for handbags, eyewear and kids apparel. Candie's also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer or other trademarks owned or licensed by Candie's. Candie's Inc. operates www.candies.com. For investor information please visit the corporate web site at www.candiesinc.com. Forward Looking Statement Disclosure The statements which are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to the risks detailed in the Company's Securities and Exchange Commission filings, and uncertainty associated with the impact on the company in relation to recent events discussed in the Company's form 10-K for fiscal 2002. Readers are cautioned not to place undue reliance on these forward-looking statements. |
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