Billabong International Ltd. has entered into a recapitalization agreement with Centerbridge Partners LP and Oaktree Capital Management LP, which would give the private equity firms at least 34 percent of the surf wear retailer.

The deal will allow Billabong to repay a $294 million bridge loan facility from Altamont Capital Partners and GSO Capital Partners, which the company agreed to in July. The loan would also replace a recapitalization facility proposed by Altamont and GSO. As a result, Billabong will pay Palo Alto, Calif.-based Altamont will receive a breakup fee of $5.62 million.

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