Billabong Raises AUS$291 Million 0
Surfwear retailer Billabong will cut its debt and improve its working capital position after raising $291 million from institutions and retail investors in a rights issue.
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.
In May Gold Coast-headquartered Billabong said $200 million of the fresh equity would be used primarily to reduce net debt to $450 million.
Billabong’s oversubscribed 11-for-two share retail rights issue raised $61 million, with around $230 million raised from institutions.
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.
Billabong shares were trading down 16 cents at $8.44 at 11.10am.
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