By Susanna Moon
Chicago, March 14 – Quiksilver, Inc. said holders had tendered for exchange €182,204,000 principal amount, or 91.1%, of subsidiary Boardriders SA’s €200 million of 8 7/8% senior notes due 2017.
In exchange, Boardriders will issue €136,484,000 principal amount of new senior notes due 2020, with settlement set for March 14, according to a company press release.
The exchange offer ended at 6 p.m. ET on March 9. The offer began on Feb. 9.
Quiksilver’s wholly owned European subsidiary Boardriders was offering a combination of new Boardriders 9½% senior notes due 2020 and cash in exchange for the 8 7/8% notes.
As announced previously, the exchange offer was being made in connection with the company’s plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Boardriders also solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.
Holders who tendered their notes in the exchange offer were deemed to consent to the proposed amendments.
The exchange payment per €1,000 principal amount is €750 principal amount of new notes, €250 principal amount of cash and a consent payment of €1.88.
The exchange offer was conditioned on 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 payment.
As reported, Quiksilver’s third amended plan of reorganization took effect on Feb. 11.
The exchange agent is Deutsche Bank AG (44 (0) 20 7547 5000 or xchange.offer@db.com).
“The final results of this exchange offer were in line with our expectations and represent the final step of a successful restructuring,” Pierre Agnes, chief executive officer of Quiksilver, said in the press release.
“We are pleased to have completed this final piece of financing, which has positioned Quiksilver on the right path with a strong balance sheet as we look to the future.”
Through the restructuring and the exchange offer, the company has cut its debt balance by more than $550 million to less than $250 million from more than $800 million, Agnes noted.
“We have also bolstered the company’s liquidity position, extended the maturity of the majority of our debt to 2020, and exited many onerous contracts that had historically burdened the business.”
Quiksilver, an outdoor sports lifestyle company based in Huntington Beach, Calif., filed for bankruptcy on Sept. 9, 2015. The Chapter 11 case number is 15-11880.
| Issuer: | Boardriders SA
|
| Issue: | Senior notes
|
| Amount: | €136,484,000
|
| Maturity: | 2020
|
| Coupon: | 9½%
|
| Settlement date: | March 14
|
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