hot off the press_terms of the deal cb and ot

Well done Anthony !!!

http://www.afr.com/p/business/companies/centerbridge_oaktree_reveal_billabong_JMvQ5bz5So4eXuJS8xijZI

Anthony Macdonald and Nabila Ahmed

"Hedge funds Centerbridge Partners and Oaktree Capital Management have released details of the offer made to Billabong International’s board, increasing pressure on the surfwear company.

The terms of the proposal include:

¦ Providing Billabong with immediate liquidity under the current financing arrangement from the date of the waiver agreement until the existing maturity date, July 28, 2014.

¦ Extensions of credit to meet working capital needs

¦ If any refinance or recapitalisation transaction is completed by October 31, no waiver fee will be payable

¦ That Billabong put the implementation of either the Centerbridge/Oaktree proposal or the Altamont Consortium proposal, to a shareholder vote before October 31

¦ Issuance of a six-year, 8 per cent fixed rate $100 million senior secured term loan to repay principal outstanding under the syndicated facility agreement

¦ $189 million of principal outstanding to be satisfied through issuance of shares representing an indicative price of approximately 25¢ a share, fully underwritten by entities associated with the hedge funds, subject to a shareholder vote

¦ Any excess of principal outstanding to be satisfied by a new five-year, $175 million loan to be provided by a third-party lender or affiliates of the hedge funds at a fixed rate of 8 per cent

¦ No requirement for the fixed sale of DaKine

¦ Retention of new CEO Scott Olivet

¦ Majority board representation by the hedge funds with an independent chairman.

Under the hedge funds’ proposal, Billabong would pay $40 million interest over the next five years – well short of the $190 million under Altamont’s proposal – while Billabong’s debt-to-earnings before interest, tax, depreciation and amortisation would have been 1.5 times.

The hedge funds were also willing to extend their funding until September 30 without any added fees, to allow Billabong shareholders to vote on the deal.

Centerbridge and Oaktree would have controlled both Billabong’s debt and equity and wanted to work with Billabong’s existing board to set a new management team"