ANOTHER NOD TO UCC: UCC Capital Corp., which specializes in middle-market lending secured by intellectual property, on Tuesday received the Licensing Executives Society’s 2005 Deal of Distinction for its December 2004 financing of BCBG Max Azria Group. UCC completed a $53 million securitization of investment grade asset-backed bonds, along with a $100 million revolving line of credit. Earlier this year, UCC was the recipient of Institutional Investor’s Securitization News’ 2004 Deal of the Year Award, also for its BCBG financing.
COTTON CHALLENGE: The U.S. on Tuesday challenged a request by Brazil for $1 billion in retaliatory trade sanctions over the failure to respond in time to a World Trade Organization ruling that U.S. cotton subsidies broke global rules. A WTO arbitrator has 60 days to determine whether the level requested is justified. Steven Fabry, principal U.S. WTO legal adviser, told a session of the Dispute Settlement Body that “the countermeasures proposed are not commensurate with the degree and nature of the adverse effects determined.” Fabry said the U.S. intends to implement the panel’s recommendations and has taken appropriate steps to do so. Brazil’s WTO ambassador Clodoaldo Hugueney said his country “is still hopeful that the actual application of retaliatory measures might not be necessary,” if the U.S. eliminates the subsidy programs.
QUIKSILVER CUTS FORECAST: Quiksilver Inc. said late Tuesday that 2006 earnings would fall below estimates. The company attributed the change to steps it was taking to more rapidly integrate Rossignol, the strengthening dollar and higher than anticipated interest expenses. The surf and skate company anticipates earning 87 to 88 cents for the 2006 fiscal year, below analysts’ average expectations of 98 cents. Quiksilver also reaffirmed its forecast for the fourth quarter and full year ending Oct. 31, 2005. The information was disclosed after the stock markets closed, but the company’s shares fell in after-hours trading.
This story first appeared in the October 19, 2005 issue of WWD. Subscribe Today.