Recapitalisation bid aimed at Billabong


Industry Updates

Deal would see funds take a 39.7 per cent stake in Billabong

Surfersvillage Global Surf News, 23 August, 2013 : - - Snubbed US hedge funds Centerbridge Partners and Oaktree Capital have put a rival recapitalisation bid to Billabong International Ltd that they claim would see the retailer up to $143 million better off on the debt-for-equity swap it took with US private equity firm Altamont last month.

Earlier this week, the two hedge funds lost an appeal to the Takeovers Panel over the refinancing deal struck between Altamont and Billabong, but its protest forced the parties to rewrite their deal.

The revised Centerbridge-Oaktree deal would see the funds take a 39.7 per cent stake in Billabong. After the market closed, Billabong confirmed that it was considering the new proposal."As part of its consideration, the board met with the Centerbridge/Oaktree consortium," the retailer said in a statement.

The company wants to finalise a financing package as soon as practical, it said. Under the offer, Centrebridge and Oaktree would provide an interim bridge loan to refinance in full the $325 million bridge loan Billabong has negotiated with Altamont, at a 12 per cent interest rate, with a maturity of March 31 next year.

Read the full article at Business Spectator

Source: Business Spectator

Author: The Editors

Tags: Billabong, Altamont, Centerbridge

Industry: Surfersvillage

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