Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, L.P. and Oaktree Capital Management, L.P. (together the “C/O Consortium”) in relation to a long term financing to recapitalise the Company and provide Billabong with a stronger balance sheet and capital structure to allow it to stabilise the business, address its cost structure, and pursue a strategy to grow the business.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
The agreements will enable Billabong to repay in full its existing US$294 million (A$315 million) bridge loan facility from the Altamont Consortium which was entered into on 16 July 2013.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
The agreements include:
- A 6 year senior secured term loan of US$360 million (A$386 million) (“New Term Debt”);
- A A$135 million equity placement to the C/O Consortium (the “Placement”) and, following the placement, a A$50 million non-underwritten, renounceable rights issue available only to shareholders other than the C/O Consortium (the “Rights Issue”, and together with the Placement, the “Equity Raising”), the proceeds of which will be used to repay2 up to US$172 million (A$185 million) of the New Term Debt with no prepayment premium; and
- 29.6 million options issued to the C/O Consortium exercisable at A$0.50 per share.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
In addition to this financing, Billabong retains the previously announced commitment from GE Capital to provide an asset-based multi-currency revolving credit facility of up to US$140 million (A$150 million) (“Revolving Facility”).
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
In order to adequately reflect the C/O Consortium’s significant investment in the Company, the C/O Consortium will be permitted to nominate representatives to the Board of Billabong. The Company notes that both members of the Consortium have long track records of successfully investing in and partnering with retail and other businesses in achieving operational turnarounds.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
“In fully evaluating the competing refinancing proposals, on a range of factors, the Board determined that the C/O Consortium proposal was in the best interests of the Company, its shareholders, its employees and other key Billabong stakeholders, on both economic terms and in providing near term certainty”, said Billabong Chairman Dr. Ian Pollard.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
He added, “The proposal was significantly improved compared to the C/O Consortium’s previously announced proposal and offered lower financial leverage and cheaper cost of funds with lower equity dilution than the Altamont proposal plus the ability for existing shareholders to participate alongside the C/O Consortium via the rights offering,”.
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
Billabong International Limited announces that it has entered into binding agreements with certain entities affiliated with Centerbridge Partners, #
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