Billabong International Ltd. (ASE: BBG) can finally focus on building back its brands now that it has agreed to a financing package and paid off previous debt. The surf-wear retailer accepted the deal, including a $294 million bridge loan, after fielding progressively smaller buyout offers from a combination of private equity firms and strategic buyers for more than a year.
On July 16, Billabong entered into an agreement with entities advised by Altamont Capital Partners, a Palo Alto, Calif.-private equity firm and GSO Capital Partners, the credit arm of New York private equity firm the Blackstone Group (NYSE: BX). The company repaid its former debt facility in full with the $294 million on July 23. The loan carries a 12 percent interest rate and matures Dec. 31.