Billabong Raises $291 Million To Pay Off Debt
josh hunter
- June 16 2009
- 336 views
- add a comment
According to reports from The West.com.au, Billabong raised $230 million from institutions and an additional $61 million from an oversubscribed 11-for-two share retail rights issue. The article says that Billabong plans to use the money to reduce debt.
From thewest.com.au: Billabong spokesman John Moffat today declined to specify how much of the proceeds from the oversubscribed rights issue would be applied to its $650 million of net debt.
“There were a number of options with the cash, and they included paying down some existing debt and generally extra cash for general working capital requirements,” he said. [...] New shares were priced at $7.50 each, and the oversubscription will prompt a 15,000 cap to the number of new shares allocated, or three times that of the shareholder’s entitlement under the rights issue.
Keep an eye on TransWorldBusiness.com for updates as they happen.
»
