NexCen Brands Completes Sale of Waverly
06 Oktober 2008 - 1:30PM
Business Wire
NexCen Brands, Inc. (NASDAQ: NEXC) today announced that the Company
completed the sale of its Waverly business. NexCen used the
proceeds from the $26.0 million sale to pay off all of the
outstanding Waverly debt of $21.3 million. Additionally, sales
proceeds remaining after the repayment of Waverly debt and the
payment of transaction expenses, were used to pre-pay $2.6 million
of debt associated with NexCen�s Bill Blass business. Kenneth J.
Hall, Chief Executive Officer of NexCen Brands, stated, �The sale
of Waverly on a timely basis is a key first step in de-levering our
balance sheet and enhancing our liquidity. With the Waverly
transaction closed, selling the Bill Blass business is a top
priority in our continuing efforts to de-lever NexCen. We are in
active discussions with multiple parties and are encouraged with
the progress. As we continue to implement our business
restructuring plan focused on our franchise business, we are
pleased by the recent solid performance of our seven franchise
brands.� About NexCen Brands NexCen manages global brands,
generating revenue through franchising and licensing. The Company
currently owns seven franchised brands. Two sell retail footwear
and accessories (The Athlete�s Foot and Shoebox New York), and five
are quick service restaurants (Marble Slab Creamery, MaggieMoo�s,
Pretzel Time, Pretzelmaker, and Great American Cookies). We also
currently own and license the Bill Blass consumer products brand.
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 expected cost savings,
expectations for the future performance of our brands or
expectations regarding the impact of recent developments on our
business. When used herein, the words �anticipate,� �believe,�
�estimate,� �intend,� �may,� �will,� �expect� and similar
expressions as they relate to the Company or its management are
intended to identify such forward-looking statements.
Forward-looking statements are based on current expectations and
assumptions, which are subject to risks and uncertainties. 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) our strategy to focus on the franchising
business may not improve our financial performance or viability;
(2) the restructuring of the bank credit facility may not provide
our business with sufficient liquidity, (3) we may not be able to
generate sufficient cash flow to make interest and principal
payments on our bank credit facility, (4) our ability to comply
with negative and affirmative covenants in our bank facility and
the effects of restrictions imposed by such covenants may have a
negative impact on our ability to operate our business, (5) we may
not be able to sell our Blass business, or the sale may not
generate sufficient proceeds to pay off the debt associated with
that business, which will lead to increased interest obligations
and entitle the bank to receive a highly dilutive warrant to
purchase shares of our common stock, (6) any failure to meet our
debt obligations would adversely affect our business and financial
conditions, and our need for additional near-term liquidity could
result in a sale of one or more of our businesses at less than an
optimal price or an inability to continue to operate one or more of
our businesses, (7) we may not be successful in operating or
expanding our brands or integrating them into an efficient overall
business strategy, (8) our marketing, licensing and franchising
concepts and programs may not result in increased revenues,
expansion of our franchise network or increased value for our
trademarks and franchised brands, (9) we depend on the success of
our licensees and franchisees for future growth, (10) we may not be
able to retain existing, or attract new, employees or franchisees,
and licenses, and (11) other factors discussed in our filings with
the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.