SYDNEY--A U.S. consortium comprising Centerbridge Partners LP
and Oaktree Capital Management have made a new unsolicited
refinancing offer for Australian surfwear retailer Billabong
International Ltd. (BBG.AU) that could deliver them nearly 40% of
the company.
The two distressed debt investors, who are owed money by
Billabong, said in a statement Friday they are offering superior
terms to a deal the retailer has already agreed to, from a separate
group comprising Californian private equity firm Altamont Capital
Partners and Blackstone Group's (BX) credit arm, GSO Capital
Partners.
Those terms include a lower interest rate on the retailer's
debt, which could lead to savings of up to A$143 million (US$129
million) over five years.
The Centerbridge and Oaktree consortium is seeking to partake in
an equity raising at A$0.35 a share, which would give them a stake
of 39.7%, assuming existing shareholders partake in a A$32.5
million rights issue.
"[Our] consortium believes the company has a well-recognised
portfolio of brands with great future potential," the investment
firms said.
Centerbridge and Oaktree have also advised Billabong's board
they have engaged with alternate CEO candidates in the event Scott
Olivet, recently installed by the Altamont consortium, is
unavailable.
Billabong last month rejected an earlier refinancing proposal
from Centerbridge and Oaktree, saying they had submitted their bid
too late.
Billabong shares were trading 1.8% higher at 56 cents early
Friday afternoon. A spokesman for the company wasn't immediately
available for comment.
-Write to Gillian Tan at gillian.tan@wsj.com
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