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.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“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