Quiksilver’s Boardriders unit begins exchange offer for 8 7/8% notes

By Angela McDaniels

Tacoma, Wash., Feb. 9 – Quiksilver, Inc.’s wholly owned European subsidiary, Boardriders SA, began a private exchange offer for its €200 million of 8 7/8% senior notes due 2017, according to a company news release.

The company is offering a combination of new Boardriders 9½% senior notes due 2020 and cash in exchange for the 8 7/8% notes.

The exchange offer is being made in connection with the company’s plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The exchange offer is designed to reduce the amount of the company’s debt that matures in 2017 and to extend the maturity for the debt exchanged to 2020.

Boardriders is also soliciting consents from the noteholders to amendments that would, among other things, eliminate substantially all of the restrictive covenants and some events of default from the indenture governing the existing notes.

Holders who tender their notes in the exchange offer are deemed to consent to the proposed amendments.

Holders who tender their notes and deliver their consents will receive €750 principal amount of new notes, €250 principal amount of cash and a consent payment of €1.88, in each case per €1,000 principal amount of existing notes exchanged.

The exchange offer will expire at 6 p.m. ET on March 9.

Among other conditions, the exchange offer is subject to the receipt of tenders for at least 85% of the outstanding notes, the occurrence of the effective date of Quiksilver’s plan of reorganization and the receipt of funds from a rights offering to finance the cash consideration.

The exchange agent is Deutsche Bank AG (44 (0) 20 7547 5000 or xchange.offer@db.com).

Quiksilver, an outdoor sports lifestyle company based in Huntington Beach, Calif., filed for bankruptcy on Sept. 9. The Chapter 11 case number is 15-11880.

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