Sponsors
Billabong ▼ 0.000 | PPR ▲ +0.30 | American Apparel ▼ -0.047 | The Buckle ▲ +0.32 | Columbia ▲ +0.30 | Deckers Outdoor ▼ -0.61 | Dicks ▼ -0.03 | Foot Locker ▲ +0.43 | Genesco ▲ +0.25 | Iconix Brand Group ▼ -0.12 | Jarden Corp ▼ -0.06 | Nordstrom ▲ +0.23 | Luxottica ▲ +0.31 | Nike ▲ +0.09 | Pacific Sunwear ▲ +0.01 | Skullcandy ▼ -0.16 | Sport Chalet ▼ 0.00 | Urban Outfitters ▲ +0.10 | VF Corp ▲ +0.49 | Quiksilver ▼ -0.05 | Zumiez ▲ +0.15 | Macys ▲ +0.38 | Tillys ▼ -0.04 |
Ticker Sponsor
Readers Say
The first thing I look at
The first thing I look at

I find Shop-Eat-Surf to be a very useful and informative site that I enjoy browsing daily. Shop-Eat-Surf is the first thing I look at every morning to keep up-to-date on the latest talk, events, and happenings in the industry. I must say I am a fan of Shop-Eat-Surf.

- By Bobby Abdel, Partner, Jack's Surfboards
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
New Industry Insight

Shorebreak Hotel as a venue for industry events. Cinematographer Louie Schwartzberg's "Moving Art Retreat" in June at Turtle Bay Resort. Details on Industry Insight.


Tiffany Montgomery
Print This Article

Orange 21 enters into promissory note with shareholder

Orange 21 enters into
By
November 02, 2010 5:47 AM

Press Release:

 

Orange 21 North America Inc. Enters Into Promissory Note With Shareholder Costa Brava III, L.P.

CARLSBAD, CA, Nov 02, 2010 (MARKETWIRE via COMTEX) --

 

Orange 21 Inc. (PINKSHEETS: ORNG), a leading designer, producer and distributor of sunglasses, prescription eyewear, snow and motocross goggles, and branded apparel and accessories for the action sports, motorsports, snowsports and lifestyle markets, announced today that effective November 1, 2010, its wholly owned subsidiary Orange 21 North America Inc. ("O21NA"), entered into a $1.0 million Promissory Note with one of Orange 21 Inc.'s shareholders, Costa Brava Partnership III, L.P. ("Costa Brava").

 

The Promissory Note is an enlargement of the $3.0 million and $1.0 million Promissory Notes entered into with Costa Brava in March 2010 and October 2010, respectively, to a total of $5.0 million and has similar terms and conditions. Each of the Promissory Notes are subordinated to O21NA's Loan and Security Agreement with BFI Business Finance ("BFI"), pursuant to the terms of a Debt Subordination Agreement, dated March 23, 2010 and amended on October 4, 2010 and October 29, 2010, by and between Costa Brava and BFI. The proceeds from the new Promissory Note are expected to be used for working capital purposes and other corporate expenses.

 

Interest under the Promissory Note accrues daily at the following rates from the date of receipt of funds under the Promissory Note at (i) 9% per annum on the last day of each calendar month and (ii) 3% per annum payable on the maturity date. In addition, the Promissory Note requires that O21NA pays a facility fee of .55% of the original principal amount on December 31, 2010 and the maturity date. The Promissory Note matures on July 29, 2011. The terms of the Promissory Note include customary representations and warranties, as well as reporting and financial covenants, customary for financings of this type.

 

Seth Hamot, Orange 21 Inc.'s Chairman of the Board of Directors, is the President and sole member of Roark, Rearden & Hamot, LLC, which is the sole general partner of Costa Brava. Mr. Hamot commented, "We are quite pleased to help our company grow. We believe Orange 21 and its portfolio of brands have lots of opportunity in front of them, and we look forward to being a part of that growth for a long time."

 

About Orange 21 Inc.

 

Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets under the brands Spy Optic(TM), O'Neil(TM), Margaritaville(TM) and Melodies by MJB(TM).

 

 


More on: Orange 21, Spy Optics

Articles You Might Have Missed