NEW YORK, Sept 7 /PRNewswire-FirstCall/ -- NexCen Brands, Inc. ("NexCen") announced today that it has drawn down $16 million from its existing $150 million debt financing facility to finance the intellectual property (IP) assets of Pretzel Time and Pretzelmaker, two of the most recognized brands in the premium hand rolled pretzel business that NexCen acquired in August 2007. As previously announced, NexCen entered into a master loan agreement arranged by BTMU Capital Corporation to support the Company's strategic goals by providing capital for the acquisition of IP centric companies in its three operating verticals.
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Robert W. D'Loren, President and CEO of NexCen, commented, "With an established financing platform firmly in place, NexCen can successfully complete transactions that would otherwise be more difficult to conclude. We are confident that this facility will continue to give us the ability to grow and execute our business plan."
The master loan agreement with BTMU Capital Corporation allows for borrowings up to $150 million. Combined draws under the agreement of $75.8 million were used to leverage NexCen's acquisitions of The Athlete's Foot, Bill Blass and Waverly. The Pretzel Time and Pretzelmaker draw down was on terms consistent with the existing agreement of LIBOR plus 240 basis points, or approximately 8.02%, payable in five years.
Theodore J. Gaffney, Executive Vice President of BTMU Capital Corporation, commented: "We are pleased with our relationship with NexCen Brands and its recent business activities. Our facility has continued to allow NexCen to finance its acquisitions under the terms of the master loan agreement and build a well diversified pool of assets."
About NexCen Brands, Inc. (http://www.nexcenbrands.com/)
NexCen Brands, Inc. is the premier 21st century brand acquisition and management company focused on assembling a diversified portfolio of intellectual property (IP) centric companies operating in the consumer branded products and franchise industries. The Company owns, licenses, franchises and markets a growing portfolio of consumer and franchise brands including The Athlete's Foot(R), Bill Blass(R), MaggieMoo's(R), Marble Slab Creamery(R), Pretzel Time and Pretzelmaker and Waverly(R). The Company licenses and franchises its brands to a network of leading retailers, manufacturers and franchisees that touch every major segment of retail distribution from the luxury market to the mass market in the U.S. and in over 50 countries around the world, and consists of more than 1,500 franchised stores. NexCen, through its information technology and franchisee support systems and advertising, marketing and public relations team, markets its brands to continually drive greater consumer awareness and brand equity for each of its brands. NexCen touches nearly every aspect of a consumer's lifestyle from the food they eat to the furnishings in their homes and the clothes and footwear they purchase.
About BTMU Capital Corporation (http://www.btmucapital.com/)
BTMU Capital Corporation is a leading provider of structured financing and related financial services in the United States and internationally. It is a subsidiary of Mitsubishi UFJ Financial Group , one of the world's largest bank holding companies in terms of assets.
For more information about these transactions, or about NexCen please visit our website at http://www.nexcenbrands.com/.
Forward-Looking Statement Disclosure
This press release contains "forward-looking statements," as such term is used in the Securities Exchange Act of 1934, as amended. Such forward-looking statements include those regarding expectations for the availability and cost of borrowings under the master loan agreement, as well as expectations about future potential acquisitions. When used herein, the words "anticipate," "believe," "estimate," "intend," "may," "will," "expect" and similar expressions often indicate a statement is a "forward-looking statement." Forward-looking statements are based on current expectations and assumptions, which are subject to risks, uncertainties and other factors. They are not guarantees of future performance or results. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include: (1) we may not be successful in implementing the new IP strategy, (2) we may not be able to acquire IP or IP centric companies or finance or exploit them on terms that are acceptable to the Company, (3) we are likely to face substantial competition in seeking to acquire and market desirable IP and IP centric companies, and competitors may have substantially greater resources than we do, (4) we may not be able to borrow desired amounts at desired times under the master loan agreement, or effect a refinancing thereof through a term loan facility, (5) we will be subject to risks associated with incurring indebtedness, including interest expense and the obligation to satisfy covenants contained in the master loan agreement, and these could have a negative impact on our business and our results and could reduce our flexibility in some circumstances, and (6) other factors discussed in our filings with the Securities and Exchange Commission. NexCen undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
