{"id":17339,"date":"2010-08-09T09:38:24","date_gmt":"2010-08-09T16:38:24","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=17339"},"modified":"2010-08-16T09:55:18","modified_gmt":"2010-08-16T16:55:18","slug":"quiksilver-trades-of-30-percent-to-rhone","status":"publish","type":"post","link":"http:\/\/www.boardistan.com\/?p=17339","title":{"rendered":"Quiksilver Trades Of 30 Percent To Rhone"},"content":{"rendered":"

\"Quik<\/a>The Rhone Group<\/a><\/strong>, the international leveraged buyout firm that saved Quiksilver<\/a><\/strong> from financial peril to the tune of $150 million in June of 2009<\/a><\/strong>, and then traded $75 million of that debt for 16.7 million shares in the company last month<\/a><\/strong>, has now “acted on all its options” and traded the rest of the debt in for 14 million more shares (at $4.50 a share) in Quiksilver common stock, according to papers filed with the SEC<\/a><\/strong>. As might not be surprising Quik CEO Bob McKnight<\/strong> is pleased with the deal.<\/p>\n

\u201cWe\u2019re delighted to complete this debt for equity exchange as another important step toward further de-leveraging our balance sheet. The transaction provides us with additional operating and financial flexibility. We especially want to thank Rh\u00f4ne for the tremendous vote of confidence in making this investment and for their ongoing belief in our company. Since extending the original term loans to us a year ago, Rh\u00f4ne has become a major presence in our board room and they have added significant value to our business.\u201d<\/p><\/blockquote>\n

As The Rhone Group now owns close to 33 percent of the company we’re guessing they’re going to become a major presence in more than the board room rolling forward. For the entire release follow the jump.
\nQuiksilver Exchanges $140 Million of Debt for Equity<\/p>\n

<\/strong>Quiksilver stockholders overwhelmingly approve de-leveraging option Exchange reduces debt by $140 million Debt-for-equity exchange accretive to earnings<\/p>\n

Huntington Beach, California, August 9, 2010 \u2013 Quiksilver, Inc. (NYSE:ZQK) today announced that it has completed a transaction with Rh\u00f4ne to exchange $140 million of the outstanding principal amount of Quiksilver\u2019s senior secured term loans for an aggregate of approximately 31.1 million shares of its common stock at an exchange price of $4.50 per share.
\nStockholders voted overwhelmingly in favor of the exchange in a special meeting conducted August 6, 2010, with more than 96% of the votes cast in favor of the exchange proposal.<\/p>\n

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, \u201cWe\u2019re delighted to complete this debt for equity exchange as another important step toward further de-leveraging our balance sheet. The transaction provides us with additional operating and financial flexibility. We especially want to thank Rh\u00f4ne for the tremendous vote of confidence in making this investment and for their ongoing belief in our company. Since extending the original term loans to us a year ago, Rh\u00f4ne has become a major presence in our board room and they have added significant value to our business.\u201d<\/p>\n

As of August 9, 2010, the outstanding balance of the Rh\u00f4ne senior secured term loans and associated accrued interest was approximately $165 million. With the $140 million exchange transaction completed, the company expects that its improved leverage profile will enable it to amend and extend its asset-based line of credit agreement in the Americas region under improved terms and also expects to secure new term loan financing for the remaining principal amount of the Rh\u00f4ne term loans under considerably better terms than the credit markets permitted a year ago. The company expects that the interest savings, even considering the additional new shares outstanding, will result in earnings accretion.<\/p>\n

In connection with the debt-for-equity exchange transaction, Quiksilver and Rh\u00f4ne entered into a stockholders agreement, pursuant to which, among other things, Rh\u00f4ne is subject to certain transfer and standstill restrictions and is entitled to certain customary information rights, participation rights and registration rights. Rh\u00f4ne\u2019s two designated directors continue to serve on Quiksilver\u2019s board of directors.<\/p>\n

About Quiksilver:<\/strong>
\nQuiksilver, Inc. (NYSE:ZQK) is the world\u2019s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, footwear, accessories, snowboards and related products. The Company\u2019s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage.
\nThe reputation of Quiksilver\u2019s brands is based on outdoor action sports. The Company\u2019s Quiksilver, Roxy, DC, Lib Tech and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding.<\/p>\n

The Company\u2019s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company- owned retail stores, other specialty stores and select department stores. Quiksilver\u2019s corporate and Americas\u2019 headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz, France, and its Asia\/Pacific headquarters are in Torquay, Australia.<\/p>\n

Forward looking statements<\/strong>:
\nThis press release contains forward-looking statements including but not limited to statements regarding the Company\u2019s financing activities, earnings per share and other future activities. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver\u2019s SEC filings for more information on the other factors that could cause actual results to differ materially from expectations, specifically the sections titled \u201cRisk Factors\u201d and \u201cForward-Looking Statements\u201d in Quiksilver\u2019s Annual Report on Form 10- K and Quarterly Reports on Form 10-Q<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The Rhone Group, the international leveraged buyout firm that saved Quiksilver from financial peril to the tune of $150 million in June of 2009, and then traded $75 million of that debt for 16.7 million shares in the company last month, has now “acted on all its options” and traded the rest of the debt […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/17339"}],"collection":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17339"}],"version-history":[{"count":1,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/17339\/revisions"}],"predecessor-version":[{"id":17340,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/17339\/revisions\/17340"}],"wp:attachment":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17339"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}