Iconix Brand Group, Inc. ICON has closed its previously announced $300 million senior secured term loan credit facility from affiliates of Fortress Investment Group LLC (FIG). Per the terms of the credit agreement, the net proceeds have been deposited into an escrow account and will be used to repay 2.50% convertible senior subordinated notes due in Jun 2016. The term loan bore an interest at LIBOR+10% per annum, payable quarterly with a 1.50% floor on LIBOR. The refinancing plan shows that the company continues to focus on its core business. Notably, the company’s shares have been going downhill since the beginning of 2015. Also, many firms filed a class action lawsuit against Iconix. It has been accused of misleading investors by underreporting the cost of its brands and overstating its earnings and revenues, by engaging in irregular accounting practices related to the booking of its joint venture revenues and profits, free-cash flow, and organic growth. On Mar 28, New York-based Iconix Brand reported fourth quarter and fiscal 2015 results. It missed the Zacks Consensus Estimate for earnings in the quarter, while revenues came in line with the same. The company also lowered its earnings guidance for 2016. The results reflect the historical restatement pertaining to some accounting treatment of certain international joint venture transactions. Now after the restatement the company is expected to resolve investors’ issues. The company has a portfolio of over 30 brands and expects to continue forming joint ventures to expand it further. This clothing brand licensing company remains optimistic on its Peanuts brand, new promotional partnerships and retail programs. The company is also divesting its brands and expects to continue to evaluate opportunities to further enhance the portfolio with value-generating brands. Recently, the company sold its rights to the Badgley Mischka IP in partnership with the brand's founders, Mark Badgley and James Mischka, and the apparel licensee MJCLK LLC. The brand was sold to Titan Industries, Inc. for $16 million in cash. Badgley Mischka was acquired by Iconix in 2004. Iconix had to divest the brand as it did not have sufficient time or resources to support it. The company expects to allocate the proceeds to other brands with larger volume and higher margin. Iconix currently holds a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the consumer discretionary sector include American Eagle Outfitters, Inc. AEO, Express, Inc. EXPR and Destination XL Group, Inc. DXLG. All of them sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMER EAGLE OUTF (AEO): Free Stock Analysis Report EXPRESS INC (EXPR): Free Stock Analysis Report DESTINATION XL (DXLG): Free Stock Analysis Report ICONIX BRAND GP (ICON): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research