REMEMBER WHEN

GOLD COAST BULLETIN

Wednesday, July 17, 2013

LAUNA Inman was dumped as chief executive of embattled surf wear company Billabong and control was set to be handed over to US private equity group Altamont Partners.

In the shock announcement after markets closed, Billabong said Ms Inman, who had only been in the role 14 months, would be replaced as chief executive by former Oakley chairman and chief executive Scott Olivet.

Billabong also said it had entered into an agreement with Altamont and fellow US private equity company Blackstone which immediately allowed the surf wear retailer to repay in full its syndicated debt facilities.

Altamont and GE Capital also provided a long-term financing package for Billabong.

Analysts welcomed the refinancing deal as a “lifeline” for the embattled Gold Coast-based retailer but warned the complex deal would still hit future hurdles.

Nathan Blair, manager of Ord Minnett Gold Coast, said Billabong was set to end up in US hands.

The immediate refinancing package involved a $325m bridging loan and the sale of Billabong’s DaKine sports accessories brand to Altamont for $70m.

Long-term, the financial package involved a $281m term loan and a $44m convertible note, as well as a revolving credit facility provided by GE Capital.

To fund the bridge facility and the long-term financing package, Billabong agreed to issue 84,519,582 options to the Altamont consortium, which amounted to 15 per cent of the fully diluted share capital of the company.