NEW YORK (TheStreet) -- Iconix Brand Group (ICON) - Get Report stock is up by 15.40% to $9.74 on heavy trading volume on Monday morning, after the company announced it received a $300 million new term loan.
The company announced on Monday that it received the new term loan from Fortress Investment Group (FIG). The proceeds from the loan will be used to repay convertible senior subordinated notes due in June 2016, Iconix said.
"We are pleased to have successfully secured this new capital, which shows the confidence that Fortress has in our underlying business," Iconix CFO Dave Jones said in a statement. "With the refinancing path for the 2016 converts now in place, we look forward to a continued focus on our core business; including the growth of our worldwide brand management platform."
Based in New York City, Iconix is an apparel company that owns brands such as Bongo, Candie's, and Joe Boxer.
So far today, 2.67 million shares of Iconix have traded, versus the company's 30-day average of 1.55 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "sell" with a ratings score of D+. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: ICON