Business news : Billabong Board Considering New Refinancing Bid

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Billabong International Limited said its board of directors is considering a debt refinancing proposal submitted Friday by Oaktree Capital Management and Centerbridge Partners, likely delaying implementation of a rival offer by a consortium of investors led by Altamont Capital Partners.

The latest proposal from the two U.S. hedge funds would provide the Australian action sports company with a $135 million equity investment, or roughly twice the Altamont consortium’s offer, which would help the company reduce its debt and save up to $129 million in interest payments over five years. It also would give Billabong until March 31, 2014 to pay back a $292.4 million interim loan compared with the Altamont consortium’s Dec. 31 deadline.

In a statement released to the media, Oaktree and Centerbridge said their new offer "provides the board with greater flexibility for addressing the company's near- and longer-term capital and operational needs when compared to the revised Altamont ... proposal."

The offer comes after an Australian Takeovers Panel essentially ordered Billabong to revise its $294 million refinancing agreement with the Altamont consortium, which Oaktree and Centerbridge argued was designed to shut out competing bids and would force Billabong shareholders to make excessive concession. 

 

to be continued....

By press release through sportsOnesource

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