Shares of Sequential Brands (SQBG) skyrocketed on news that it has received an extension on default waiver.
Yesterday, Sequential Brands amended its credit agreement with Wilmington Trust. On April 20, the company received a waiver of its existing defaults until May 10.
In addition, last month the company has hold Heelys to BBC International for $11M, the Heelys brand was originally acquired in 2013 for a net purchase price of approximately $5.5 million (after accounting for cash on the Heelys balance sheet that we received at the time of the 2013 purchase). BBC International has been the core licensee of Heelys since 2013. We believe the brand is in great hands under BBC’s leadership going forward.
The company says the majority of the net proceeds will be used to pay down debt.