Quiksilver gets commitments for $150 million term loan, $200 million asset-based facility

By Sara Rosenberg

New York, June 8 - Quiksilver Inc. entered into agreements for a new about $150 million five-year senior secured term loan and a $200 million three-year asset-based credit facility, according to a news release.

Rhône, a private equity firm, is providing the term loan, while Bank of America and GE Capital are the joint lead arrangers on the revolver.

Rhône will receive detachable warrants providing the right to acquire about 20% of the then-outstanding shares of Quiksilver's common stock at a strike price of $1.86. The warrants expire seven years from issue.

The term loan is priced at 15%, of which up to 7.5% is PIK and the remainder is payable in cash.

Proceeds from the term loan will be used to pay down existing debt and proceeds from the revolver will be used to refinance an existing facility.

In addition, the company is in discussions with its French banking partners to consolidate its European debts into a new committed multi-year facility and expects a positive resolution in the near term.

Rhône's commitment to fund the term loan is subject to the satisfaction of certain terms and conditions, including completion of the refinancing of Quiksilver's multi-year facility in Europe and other customary closing conditions.

The term loan is expected to close before the end of July.

Quiksilver is a Huntington Beach, Calif.-based outdoor sports lifestyle company.

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