Iconix Brand Group, owner of clothing brands including Danskin and Mossimo, amended its senior secured term loan and dismissed pending securities class action lawsuits previously filed against the company and certain of its current and former officers and directors.

The company has been informed by Walmart that the DanskinNow license, which is a diffusion of the Danskin brand, will not be renewed beyond January 2019. As a result, royalty revenue for the Danskin brand is estimated to decline approximately $15.5 million in 2018. Danskin, which is one of the most trusted brands for women’s fitness apparel, will continue to be distributed to leading retailers including Lord & Taylor, Costco and TJMaxx. Longer term, the transition out of Walmart provides the opportunity to relaunch and expand the core Danskin brand in other venues.

According to a related 8-K filing, the company entered into a limited waiver and amendment to its credit agreement dated August 2, 2017, with Cortland Capital Market Services, as administrative agent and collateral agent and the lenders party including Deutsche Bank AG, New York Branch.

Under the terms of the original credit agreement, the company established an escrow account into which the proceeds of the total funded amount of the term loan were deposited, of which approximately $59.2 million was used to buy back 2018 Notes in open market purchases in the third quarters of 2017. Concurrently with entering into the amendment, the remaining escrow balance of approximately $231 was returned to the lenders.

The amendment provides for, among other things, a reduction in the existing $300 million term loan, a new senior secured delayed draw term loan facility in the aggregate amount of up to $165.7 million. The term loans consists of a $25 million first delayed draw term loan to be drawn on or prior to March 15, 2018 and a $140.7 million second delayed draw term loan to be drawn on March 15, 2018 for the purpose of repaying the 2018 notes.