Sponsors
Billabong ▼ -0.005 | PPR ▼ -2.35 | American Apparel ▲ +0.019 | The Buckle ▼ -0.38 | Columbia ▼ -0.17 | Deckers Outdoor ▼ -0.22 | Dicks ▼ -0.61 | Foot Locker ▼ -0.46 | Genesco ▼ -0.28 | Iconix Brand Group ▼ -0.29 | Jarden Corp ▼ -0.45 | Nordstrom ▼ -0.16 | Luxottica ▲ +0.39 | Nike ▲ +0.53 | Pacific Sunwear ▲ +0.01 | Skullcandy ▼ -0.02 | Sport Chalet - 0 | Urban Outfitters ▲ +0.09 | VF Corp ▲ +0.47 | Quiksilver ▼ -0.027 | Zumiez ▼ -0.27 | Macys ▼ -0.22 | Tillys ▲ +0.17 |
Ticker Sponsor
Readers Say
Executive Edition is a must have
Executive Edition is a must have

Before Shop-Eat-Surf, there were two sites I paid for premium content on. One is Surfline, the other is the Wall Street Journal. One is about all things surf, the other, the best business content site in the world. Shop-eat-surf is the intersection of those two worlds. Shop-Eat-Surf provides everything from coverage of events, people, brands and trends. However, beyond the Executive Edition "wall" is more meaty analysis and interpretation of financial statements, business models and brand philosophies; why certain brands and companies are succeeding, where others aren't. The Executive Edition is a must have read if the business of surf and action sports are on your radar screen.

- By Jeff Berg, Co-owner, Surfline
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
Industry Insight

AGENDA: Last chance to register before July 8-9 show.
ISPO: Shanghai trade show runs July 2 - 4.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

Rhone may own 30% Quik by year end

By Tiffany Montgomery
June 15, 2010 6:51 AM

Quiksilver and private equity firm Rhone are proposing a debt for equity swap that could lead to Rhone owning 30% of Quiksilver’s outstanding shares.

Rhone came to the rescue of cash-strapped Quiksilver last year by loaning the company $150 million at a steep 15% interest rate.

At the time, Rhone also acquired warrants to buy some Quiksilver stock at roughly $1.86 per share.

Here’s a summary of the deal proposed Tuesday, which requires stockholder approval:

Rhone will exchange $75 million of the outstanding loan for 16.7 million shares of stock at the exchange rate of $4.50.

Quiksilver has the option to require Rhone to exchange an additional $65 million of the loan balance for additional shares at the same price within 60 days of the first deal being signed. Quiksilver said it will pursue other equity financing options during the period to consumate this option.

If the exchange proposed today is approved, Rhone will own 24.2% of outstanding shares, in addition to the warrants it previously acquired. If Quiksilver is able to exercise its option and exchange more shares to pay down the additional $65 million, Rhone will own 30%.

If approved by shareholders, the exchanges are expected to close by the end of Quiksilver’s fiscal year, Oct. 31.

All told, the deal could decrease Quiksilver’s debt by $140 million. Quiksilver reported net debt of $733 million at the quarter ended April 30.

On Page 2: The press release.

 

Previous 1 2 Next

Articles You Might Have Missed