Xcel Brands Inc. Completes $13MM Senior Financing
NEW YORK, Aug. 5, 2013 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (OTCQX:XELB), a
leader and innovator in Omnichannel retail sales and owner of the Isaac
Mizrahi New York brand, today announced that on August 1, 2013 the Company
completed a $13 million senior term loan with Bank Hapoalim, which was used to
refinance its previous senior debt facility with MidMarket Capital Partners
and for general working capital purposes. The new term loan will bear interest
at a rate of 4.44%, payable quarterly, and has a five year term. The new
senior term loan is expected to lower the Company's annual interest expense,
and provides the company with additional operating flexibility.
Separately, on June 7, 2013, Xcel completed a $5 million private placement of
its common stock. Threadstone Partners LP acted as the placement agent.These
transactions are part of the Company's continuing efforts to decrease net
leverage, which includes the Company's settlement of $1.4 million of future
payment obligations and the reduction of $6.3MM of contingent obligations in
December 2012, and provides Xcel with additional working capital and
flexibility for future growth.
Robert D'Loren, Chairman and Chief Executive Officer, Xcel Brands, Inc., said,
"I am pleased with the progress that we have made with the repositioning of
the Isaac Mizrahi New York brand.These recent capital transactions position
us well for the future."
About Xcel Brands, Inc.
Xcel Brands engages in the acquisition, design, licensing and marketing of
consumer brands incorporating an OMNICHANNEL sales strategy inclusive of
interactive media, digital and bricks and mortar retail.In 2011, the company
acquired designer apparel brand Isaac Mizrahi New York and an interest in Liz
Claiborne New York, quickly expanding into 100+ categories for the Isaac
Mizrahi brand.The company's executive management team possesses significant
talent, experience and a proven track record of success to create and grow
branded consumer products businesses.www.xcelbrands.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995. The statements that 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 Xcel, which
may cause the actual results, performance or achievements of Xcel 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, uncertainty regarding the results of Xcel's
acquisition of additional licenses, continued market acceptance of current
products and the ability to successfully develop and market new products
particularly in light of rapidly changing fashion trends, the impact of supply
and manufacturing constraints or difficulties relating to Xcel's licensees'
dependence on foreign manufacturers and suppliers, uncertainties relating to
customer plans and commitments, the ability of licensees to successfully
market and sell branded products, competition, uncertainties relating to
economic conditions in the markets in which Xcel operates, the ability to hire
and retain key personnel, the ability to obtain capital if required, the risks
of litigation and regulatory proceedings, the risks of uncertainty of
trademark protection, the uncertainty of marketing and licensing acquired
trademarks and other risks detailed in Xcel's SEC filings. The words
"believe," "anticipate," "estimate," "expect," "confident," "continue,"
"will," "project," "provide" "guidance" and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward looking statements, which speak only as of the date the
statement, was made. All forward-looking statements are qualified by these
cautionary statements and apply only as of the date they are made. Xcel
undertakes no obligation to update any forward-looking statement, whether as a
result of new information, future events or otherwise.
CONTACT: Media Contact:
Erika Stair, Xcel Brands, Inc.
+ 1 (347) 727-2476, email@example.com
Seth Burroughs, Xcel Brands, Inc.
+1 (347) 532-5894, firstname.lastname@example.org
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