Just announced, June 15, 2010, that Quiksilver, which also owns DC, Roxy, LibTech, and Hawk brands, has entered into an agreement with Rhone to exchange $75 million of its outstanding principal amount of Quiksilver’s senior secured term loads for 16.7 million shares of its common stock at an exchange price of $4.50 per share. In addition, Quiksilver has an option to require Rhone to exchange up to an additional $65 million of its remaining outstanding principal amount of senior secured term loans for additional shares of common stock at the same price per share.
According to CEO Robert B. McKnight, “This exchange offer is an important step toward further de-leveraging our balance sheet and will provide us with additional operating flexibility in an improving business environment.”
With the $75 million debt-for-equity exchange, Rhone now owns about 24.2% of the outstanding shares.
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