Quiksilver Secures Financing Transactions

Quiksilver Chairman, CEO, and President Bob McKnight.

Quiksilver Chairman, CEO, and President Bob McKnight.

Quiksilver announced today that is has secured financing in Europe. Click Here for an exclusive interview with Quiksilver Chairman, CEO, and President Bob McKnight outlining the details of the deal and much more.

Press Release:

HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Quiksilver, Inc. (NYSE:ZQK – News) today announced that it has entered into an agreement with its European banking partners to consolidate its European debt obligations, including previously uncommitted lines of credit, into a new committed 4-year facility consisting of €170 million in term loans, a letter of credit facility with a capacity of €40 million and a €58 million revolving line of credit. The European facility is subject to customary closing conditions and is expected to close before the end of September. As part of its commitment, the European bank group has extended the maturity of a €55 million line of credit, which will be absorbed into the new facility, to accommodate the expected closure date of the transaction.

As part of a separate agreement, Societe Generale Bank & Trust, a member of the European bank group, has extended the maturity of a €50 million term loan due to mature in July 2010 until July 2013.

Quiksilver also announced that two transactions previously disclosed by the Company had closed and funded on Friday, July 31, 2009. In the first transaction, Rhône, an international private equity firm with offices in New York, London and Paris, funded a 5-year senior secured term loan of approximately $150 million. In the second transaction, Bank of America and GE Capital, as joint lead arrangers, funded a new 3-year $200 million asset-based credit facility for Quiksilver’s Americas business.

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We have been working to improve our capital structure for some time and are very pleased to have completed this comprehensive refinancing of our global business. The agreement with our French banking partners eliminates the risks associated with our previously uncommitted debt in Europe and extends the term of our European debt obligations to allow us to continue our efforts to improve operating profitability. With the European commitment in place and the funding from Rhône and our US bank group in hand, we can now fully concentrate our efforts on streamlining the business and making great product within our three great brands – Quiksilver, Roxy and DC.”