×
316
Fashion Jobs
MEDCIS PATHLABS INDIA PVT LTD
Medcis Path Labs is Hiring For Pathology Area Sales Manager-Chennai
Permanent · Chennai
TIME TECHNOPLAST
Area Sales Manager
Permanent · Andheri
LIFE TURN MANAGEMENT CONSULTANT
sr. Manager Production - Sricity, Tada - Mnc Company - Engineering Ind
Permanent · Tada
MCKENZIE
Hiring For Retail Store Merchandiser / Manager
Permanent · Chennai
V2B GLOBAL CONSULTANTS
sr Technician Apparel -Buying Office
Permanent · Gurugram
MANPOWERGROUP SERVICES INDIA
Opening || Horeca Sales Manager || Kolkata
Permanent · Kolkata
ADIDAS
Senior Product Owner - Machine Learning & ai
Permanent · GURUGRAM
ADIDAS
Senior Technology Consultant - Omnichannel
Permanent · GURUGRAM
PUMA
Manager- Warehouse (B2C)
Permanent · Bengaluru
HARMAN FINOCHEM
sr. Manager- Api Production For Srp With Leading Pharma @ Aubad
Permanent · Aurangabad
PNB HOUSING
Area Sales Manager
Permanent · Thane
PNB HOUSING
Area Sales Manager
Permanent · Pune
JM FINANCIAL HOME LOANS LTD
Area Sales Manager - Home Loans
Permanent · Chennai
DANIEL WELLINGTON
IT Support Specialist
Permanent · MUMBAI
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Karaikal
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Thiruvarur
DBS BANK
Hiring For Area Sales Manager - Gold Loan
Permanent · Tirunelveli
AVANTOR
Area Sales Manager- Lab Consumables
Permanent · Pune
ADIDAS
Manager Brand Activation Originals
Permanent · GURUGRAM
ZACH LIFESTYLE PVT. LTD.
Manager - Content & Social Media
Permanent · MUMBAI
NEW ALFA INTERNATIONAL
Foundry Production Manager
Permanent · Dubai
MEDCIS PATHLABS
Medcis Pathlabs is Hiring For Pathology Area Sales Manager
Permanent · Visakhapatnam
By
Reuters
Published
Sep 2, 2013
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Australia's Billabong attracts debt players

By
Reuters
Published
Sep 2, 2013

SYDNEY, Australia - U.S. hedge fund Coastal Capital joined debt specialists circling Billabong International Ltd on Monday, seeking a board spill, as rival investors eye the proceeds from a potential debt restructure rather than equity from a long-term turnaround.

Picture Billabong | Source: Billabong

It's a change from a lonely couple of years for the Australian surfwear retailer, during which it opened its books to several private equity investors only to have them walk away.

"Private equity firms are looking at ways they can exploit the vulnerability without risking too much skin," said City Index analyst Peter Esho. "It's moved from a survival valuation to a play for debt."

Billabong's shares jumped 14 percent to A$0.48 ($0.43) after shareholder Coastal said it wanted to ditch and replace the majority of the board as well amend the company's constitution for member approval of future debt and equity financing arrangements.

The stock has improved from a record low of A$0.12 in June but remains a far cry from the A$14 reached in the company's heyday in 2007.

Still, analysts say an equity valuation of around A$0.40 to A$0.60 is fair for a company that recently wrote down the value of its namesake brand to zero.

Billabong was crippled by an ill-timed global expansion amid the global economic downturn and the loss of favour with young shoppers for its brands, leading to an annual net loss of A$859.5 million last financial year.

The company last month entered into a $470 million refinancing arrangement with private equity firms Altamont Capital Partners and Blackstone Group Inc.

But it later said it would consider a rival offer from U.S. hedge funds Oaktree Capital Management and Centerbridge Partners, which offered a number of sweeteners, including a lower interest rate.

IG market analyst Evan Lucas said there was speculation Centerbridge and Oaktree were behind some of the recent rally in Billabong shares.

"The price is actually quite strong, suggestions are that it could actually be the two corporate players and they're trying to pick up equity shares to then use as debt talk as well," Lucas said.

PROPOSED BOARD SPILL

New York-based Coastal, which picked up a 5 percent stake in Billabong last month, has a history of gatecrashing debt-for-equity deals in Australia, attempting to derail a $2 billion deal by TPG Capital for Alinta Energy in 2011.

Coastal wants to remove all Billabong's current directors except founder and majority shareholder Gordon Merchant and fellow board veteran Colette Paull.

Billabong said it is reviewing the request from Coastal to call a shareholder meeting to vote on its proposals. The Gold Coast-based company added however that Coastal's intervention would not derail a refinancing deal.

Altamont, which plans to make former Oakley boss Scott Olivet CEO to replace Launa Inman, said in a statement on Thursday it was committed to working with the current board "to reinvigorate Billabong's businesses and brands."

Coastal, Centerbridge and Oaktree could not immediately be reached for comment.

© Thomson Reuters 2023 All rights reserved.