Xcel Brands, Inc. (XELB)

[56Chevy]

Xcel Brands Inc. Completes $13MM Senior Financing

NEW YORK, Aug. 5, 2013 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (OTCQX:XELB), a leader and innovator in Omnichannel retail sales and owner of the Isaac Mizrahi New York brand, today announced that on August 1, 2013 the Company completed a $13 million senior term loan with Bank Hapoalim, which was used to refinance its previous senior debt facility with MidMarket Capital Partners and for general working capital purposes. The new term loan will bear interest at a rate of 4.44%, payable quarterly, and has a five year term. The new senior term loan is expected to lower the Company's annual interest expense, and provides the company with additional operating flexibility.

Separately, on June 7, 2013, Xcel completed a $5 million private placement of its common stock. Threadstone Partners LP acted as the placement agent. These transactions are part of the Company's continuing efforts to decrease net leverage, which includes the Company's settlement of $1.4 million of future payment obligations and the reduction of $6.3MM of contingent obligations in December 2012, and provides Xcel with additional working capital and flexibility for future growth.

Robert D'Loren, Chairman and Chief Executive Officer, Xcel Brands, Inc., said, "I am pleased with the progress that we have made with the repositioning of the Isaac Mizrahi New York brand. These recent capital transactions position us well for the future."

http://ir.xcelbrands.com/releasedetail.cfm?ReleaseID=782799