SYDNEY — Embattled Australian surfwear manufacturer Billabong International Ltd said Monday that it has sold its Canadian retail chain West 49 to Toronto-based YM Inc for approximately 9 to 11 million Canadian dollars, or $8.63 to 11 million at current exchange.
Billabong said it has also signed an approximately 34 million Canadian dollar ($33 million) non-exclusive wholesale supply agreement with YM for the next two years. Billabong will retain six Billabong stores and two Element stores in Canada.
Billabong also said that it has already received $300 million of the $360 million loan Centerbridge Partners and Oaktree Capital Management are giving the Australian company. Billabong said it used the funds to repay the $294 million bridge loan it owes the Altamont Consortium.
RELATED STORY: Billabong Links With Centerbridge and Oaktree >>
The company continues to work with GE Capital to provide an asset-based multi-currency revolving credit facility of up to $100 million, reduced from up to $140 million in part due to the West 49 sale.
Billabong’s 2013 annual general meeting is tabled for Dec. 10, with a second shareholder meeting due in January to discuss the Centerbridge/Oaktree Consortium transactions.