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5 years ago
TEXT-S&P rates Icon Brand Holdings LLC 2012-1 notes 'BBB (sf)'
November 29, 2012 / 9:11 PM / 5 years ago

TEXT-S&P rates Icon Brand Holdings LLC 2012-1 notes 'BBB (sf)'

3 Min Read

OVERVIEW
     -- Icon Brand Holdings LLC's series 2012-1 issuance is an ABS 
securitization backed by securitized trademarks and license agreements, 
certain joint-venture interests, and other securitized IP assets, including 
the right to receive payments in connection therewith.
     -- We assigned our 'BBB (sf)' ratings to the series 2012-1 notes.
     -- The 'BBB (sf)' ratings reflect our view of the transaction's legal and 
payment structures, credit enhancement, the servicer's ability, and the 
projected cash flows supporting the notes, among other factors.
 
NEW YORK (Standard & Poor's) Nov. 29, 2012--Standard & Poor's Ratings Services 
today assigned its 'BBB (sf)' ratings to the $700 million senior secured notes 
series 2012-1 issued by Icon Brand Holdings LLC, Icon DE Intermediate Holdings 
LLC, Icon DE Holdings LLC, and Icon NY Holdings LLC (the co-issuers) (see 
list).

The note issuance is an asset-backed securities transaction backed by 
securitized trademarks and license agreements, certain joint-venture 
interests, and other securitized intellectual property (IP) assets, including 
the right to receive payments in connection therewith.


The ratings reflect our view of 
     -- The strength of the Iconix brands, the likelihood for the brands to 
survive through a bankruptcy of Iconix Brand Group Inc. (Iconix), and the 
brands' resulting capacity to continue to generate sufficient cash flows from 
business operations, provided that adequate servicing remains in place.
     -- Iconix's business risk profile.
     -- The projected cash flows supporting the notes.
     -- A reserve account funded with three months of interest expense, a 
letter of credit, or both, and the servicer's obligation to make interest and 
collateral protection advances to the extent deemed recoverable.
     -- The transaction's legal and payment structures.
 
RELATED CRITERIA AND RESEARCH

Related Criteria
     -- Principles Of Credit Ratings, Feb. 16, 2011
     -- U.S. Corporate Securitization Transactions, Oct. 24, 2006
 
Related Research
     -- Presale: Icon Brand Holdings LLC, Icon DE Intermediate Holdings LLC, 
Icon DE Holdings LLC, Icon NY Holdings LLC - Series 2012-1, Nov. 12, 2012
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
 
RATINGS ASSIGNED
Icon Brand Holdings LLC, Icon DE Intermediate Holdings LLC, Icon DE Holdings 
LLC, Icon NY Holdings LLC - Series 2012-1

Class         Rating     Amount (mil. $)(i)
A-1           BBB (sf)                  100
A-2           BBB (sf)                  600
 
(i)The notional for the class A-2 notes on the closing date is $600 million. 
An additional issuance of up to $400 million of the class A-2 notes may occur 
within three years of the closing date, subject to the satisfaction of certain 
conditions. Our analysis assumes the entire $1 billion of class A-2 notes is 
issued at close.

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