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NexCen Brands to finance IP assets of Pretzel Time & Pretzelmaker

08 Sep '07

2 min read

NexCen Brands Inc announced 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.

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."

NexCen Brands Inc

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