In Monday trading, shares of Iconix Brand Group Inc. (ICON, Financial) skyrocketed after the company announced a private exchange of its convertible notes and provided its outlook for 2018.Â
The company has reached agreements with holders of about $110 million worth of its 1.5% notes that mature next month to exchange the convertible notes for new senior subordinated convertible notes and cash payments covering accrued but unpaid interest.
"These exchange transactions are part of the company's strategy to satisfy near-term debt obligations and represent a positive step in improving our balance sheet,"Â CEO John Haugh said.
The company projects 2018 revenue of $190 million to $220 million, higher than estimates of $211 million.
Moreover, it launched a $12 million cost-savings program and signed a multiyear license deal with Target Corp. (TGT, Financial) to sell the Umbro soccer brand.
French tire manufacturer Michelin (XPAR:ML, Financial) rose nearly 3% today after announcing its net profit rose slightly over the past year. The company reported net profit of 1.69 billion euros ($2.07 billion) for 2017, which was up from 1.67 billion euros a year ago. Revenue rose to 21.96 billion euros from 20.91 billion euros. The company beat profit estimates of 1.67 billion euros, but fell short of revenue expectations of 21.98 billion euros. Revenue, however, increased 5% due to sustained market share gains in its 18-inch and larger tires business.
The company cautioned it believes currency effects will hurt operating profits this year.
Michelin also declared a dividend of 3.55 euros per share.
The company also acquired a 20% stake in Mobivia Groupe SA's ATU Auto-Teile-Unger GmbH & Co. for 60 million euros. CEO Jean-Dominique Senard commented on the deal:
"Michelin is pursuing the acquisitions that will support its ambitions for growth and value creation."
Disclosure: The author holds no positions in any stocks mentioned.
