NEW YORK — Candie’s Inc. has a new financing deal in the form of intellectual property securitization, a still relatively underused concept in the fashion industry.
UCC Capital Corp. on Wednesday said it has completed an investment-grade, asset-backed securities transaction for Candie’s. The bonds, based on income stream and backed by Candie’s trademarks and licenses, are rated "Baa3" by Moody’s Investors Service and are self-liquidating over seven years. Proceeds will be used toward paying down debt and for working capital.
Neil Cole, president and chief executive officer of Candie’s, said in a statement: "We are extremely pleased to be able to complete this securitization of our intellectual property. This type of financing emphasizes the commercial strength of our powerful brands, improves our balance sheet and leaves additional availability to borrow against more traditional assets such as inventory and accounts receivable. This capital will provide a solid foundation to support our plans for growth."
Robert D’Loren, president and ceo of UCC Capital, told WWD in a telephone interview that the deal took about six months to pull together. An earlier attempt just before Sept. 11 was pulled because of market conditions.
D’Loren said: "One can expect more deals involving IP securitization now that the institutional investor is beginning to recognize the value of intellectual property." He expects to announce another completed deal for an apparel company shortly, but couldn’t provide additional information because of its classification as a private placement offering.
So far, the deals have been in the entertainment field, such as high-profile bond player David Bowie. The rocker sold $55 million of "A3"-rated, 15-year, 7.9 percent bonds to Prudential Investments in 1997 based on his existing catalog of music compositions.
According to D’Loren, the company’s trademarks and licenses, which secure the transaction, are placed into a "bankruptcy remote subsidiary" to preserve the collateral on the loan.
Bill Blass was the first fashion designer to float an investment-grade bond to finance the sale of his company in 1999. That deal was through D’Loren’s other company, CAK UCC, and the bonds are set to be paid off in 2009.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye