asx announcement - Investor Relations Solutions
ASX ANNOUNCEMENT GE CAPITAL REVOLVING CREDIT FACILITY AND RIGHTS ISSUE TIMETABLE UPDATE GOLD COAST, 18 December, 2013: Billabong International Limited ("Billabong" or the "Company") today announces that the previously announced asset-based multi-currency revolving credit facility of up to US$100 million from GE Capital has now been agreed and the first drawdowns were made on 16 December 2013 (New York time). “Together with the previously announced term loan from the Centerbridge Partners and Oaktree Capital Consortium, today’s announcement is another important step in putting in place a capital structure that allows the Company to focus on and execute its operational turnaround,” said Billabong CEO Neil Fiske. “As we detailed at the recent AGM, the proposed equity issue to the Consortium and subsequent rights issue for all other shareholders are the remaining critical parts of fulfilling that goal.” As previously announced, subject to shareholder approval of the proposed A$135 million placement at A$0.41 per share to certain entities affiliated with Centerbridge Partners, L.P. and Oaktree Capital Management, L.P. (together the “C/O Consortium”), the Company will undertake a non-underwritten, renounceable rights offering to raise A$50 million at A$0.28 per share (the "Rights Issue"). As the shareholder meeting to seek approval for the placement is expected to occur in January 2014, Billabong now intends to launch the Rights Issue on the date of the release of the half year results for the period ending 31 December 2013, expected to be on or around Friday, 21 February 2014. As part of this decision, the C/O Consortium has confirmed that it will not take up its rights in the Rights Issue1 in respect of any shares received under the proposed placement. This is consistent with the previously agreed position that the C/O Consortium would not have any entitlement under the Rights Issue in respect of such shares. Media or investor related queries should be directed to Chris Fogarty, Group Executive Corporate Affairs on mobile +61 420 928 824. MARIA MANNING COMPANY SECRETARY
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Assuming shareholder approval for the proposed placement of 329,268,294 shares to the C/O Consortium is obtained, it is expected that the number of Billabong ordinary shares on issue following the proposed placement will be 808,212,586 shares. To give effect to the intention that the Rights Issue will raise A$50 million at A$0.28 per share, it is expected that the Rights issue will result in the issuance of up to 178,571,429 shares. The offer ratio for the Rights Issue is expected to be 3 for every 8 shares then on issue and to be consistent with the agreement between Billabong and the C/O Consortium, they will not be taking up or selling their rights in respect of the proposed placement shares (and such shares shall not be part of any shortfall book build).
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Assuming shareholder approval for the proposed placement of 329,268,294 shares to the C/O Consortium is obtained, it is expected that the number of Billabong ordinary shares on issue following the proposed placement will be 808,212,586 shares. To give effect to the intention that the Rights Issue will raise A$50 million at A$0.28 per share, it is expected that the Rights issue will result in the issuance of up to 178,571,429 shares. The offer ratio for the Rights Issue is expected to be 3 for every 8 shares then on issue and to be consistent with the agreement between Billabong and the C/O Consortium, they will not be taking up or selling their rights in respect of the proposed placement shares (and such shares shall not be part of any shortfall book build).
