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Billabong gets refinancing deal, new CEO

Editorial
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The shares of clothing maker Billabong were up sharply yesterday in response to a debt refinancing deal.

CEO Laura Inman stepped down and was replaced by Scott Olivet, formerly of Oakley and Nike.

The Gold Coast-based company’s Dakine brand was sold to Altamont Capital Partners, one of two private equity firms involved in the arrangement.

Fairfax reports that Altamont said it would lend Billabong $325 million for two seats on the board and share options for 15 per cent of the company.

Shares were up by as much as 46 per cent in morning trading on the news yesterday.

Market analyst Roger Montgomery told the ABC that a sense of perspective was needed when considering the jump in the share price.

"We've got to remember that it's down around 97 or 98 per cent from its peak of around $14 six years ago and in that time there's been... a very substantial decline in revenue," he said.

Image: Transworld Surf

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