Billabong leaps most in 16 months on refinancing talks

Billabong has surged in the most in 16 months after the surfwear retailer announced there were progressed talks to repay its syndicated debt facilities.

Billabong has surged in the most in 16 months after the surfwear retailer announced there were progressed talks to repay its syndicated debt facilities.

Shares in the embattled company leapt by 23.1% to 16 cents at 1420 AEST after the announcement that separate discussions with Altamont Capital Partners and Sycamore Partners were "well advanced" for proposals to sell its assets and refinance, which would be used to repay its $286 million worth of debt.

Shares had already jumped by 11% prior to the announcement amid news that $20 million worth of syndicate debt had been sold to specialised investment firm SC Lowy from HSBC.

On emerging from an extending trading halt on June 4, Billabong said takeover talks with the two groups had proved fruitless and downgraded its full-year earnings guidance.

Billabong said earnings before interest, tax, depreciation and amortisation would be between $67 million and $74 million for the current financial year, its second downard revision since February, when the forecast was cut to between $74 million to $85 million.