Billabong signs takeover deal

Recapitalisation agreement includes appointment of new CEO, MD; board to include Centerbridge-Oaktree members.

Billabong International (BBG) has entered a binding agreement with the Centerbridge-Oaktree consortium to recapitalise the company.

In a statement to the Australian Securities Exchange, Billabong said the deal would include a rejig of its board to include members appointed by Centerbridge-Oaktree.

Former industry partner to Canadian private equity firm Onex. Neil Fiske, has been appointed Billabong chief executive officer and managing director.

The long-term financing deal will include a six-year senior secured term loan of $386 million, a $135 million equity placement and a $50 million non-underwritten, renounceable rights issue.

Billabong said it would now be able to repay its $US294 million bridge loan from rival Altamont consortium.

The retailer has entered into an equity funding deed in relation to a placement to the Centerbridge-Oaktree consortium of $135 million at 41 cents per share, subject to shareholder approval.

Subject to the placement proceeding, there will be a $50 million non-underwritten, renounceable rights offering, available only to shareholders other than the consortium.