Billabong International Ltd.’s (BBG) $294 million refinancing...

Billabong International Ltd.’s (BBG) $294 million refinancing deal with a group led by Altamont Capital Partners is anti-competitive and should be reviewed by the takeover regulator, according to the surfwear company’s lenders.

Terms relating to higher interest payments on convertible debt attached to the deal and a A$65 million ($60 million) termination fee “are anti-competitive and coercive”, the Takeovers Panel quoted an application from Oaktree Capital Management LP and Centerbridge Partners LP as saying in a regulatory statement today.

The two distressed-debt funds, which have bought about A$289 million in Billabong’s syndicated loans, were rebuffed in a rival refinancing offer made to the Australian surfwear company yesterday. The funds’ proposal isn’t “capable of acceptance”, the company said in a separate regulatory statement.

“The applicants also submit that there has been no disclosure of the terms of the exclusivity arrangements or the details of the circumstances in which the termination fee may be payable,” Takeovers Panel director Allan Bulman said in the statement today.

A sitting Panel has not yet been appointed and no decision has been made whether to conduct proceedings, Bulman said. The Panel didn’t comment on the merits of the application.

Billabong shares were 15 percent higher at 41 Australian cents at 11:17 a.m. in Sydney today, their highest level since May 6.