Billabong draws from GE Capital revolving credit facility

“Together with the previously announced term loan from the Centerbridge Partners and Oaktree Capital Consortium, announcement is another important step in putting in place a capital structure that allows the Company to focus on and execute its operational turnaround,” said Billabong CEO Neil Fiske.

“As we detailed at the recent AGM, the proposed equity issue to the Consortium and subsequent rights issue for all other shareholders are the remaining critical parts of fulfilling that goal.”

As previously announced, subject to shareholder approval of the proposed A$135 million placement at A$0.41 per share to certain entities affiliated with Centerbridge Partners, L.P. and Oaktree Capital Management, L.P. (together the “C/O Consortium”), the Company will undertake a non-underwritten, renounceable rights offering to raise A$50 million at A$0.28 per share (the "Rights Issue").

As the shareholder meeting to seek approval for the placement is expected to occur in January 2014, Billabong now intends to launch the Rights Issue on the date of the release of the half year results for the period ending 31 December 2013, expected to be on or around Friday, 21 February 2014.

As part of this decision, the C/O Consortium has confirmed that it will not take up its rights in the Rights Issue1 in respect of any shares received under the proposed placement. This is consistent with the previously agreed position that the C/O Consortium would not have any entitlement under the Rights Issue in respect of such shares.

Billabong