The financial press is reporting surfwear company Billabong International Limited has agreed to a $294 million (A$325 million) debt refinancing deal that will effectively see control of the company handed over to consortium led by U.S. private equity group Altamont.

The company announced that it has entered into agreements with entities advised by Altamont and entities sub-advised by GSO Capital Partners (the credit arm of the Blackstone Group, and together with Altamont, the "Altamont Consortium") which will allow Billabong to immediately repay in full its existing syndicated debt facilities.

The company has also entered into commitment letters with the Altamont Consortium and GE Capital to provide a long term financing package of $294 million (A$325 million).

The immediate refinancing will be by way of a bridge financing by the Altamont Consortium of the company's existing syndicated debt facilities and the sale of the adventure sports accessories brand DaKine to Altamont for a purchase price of A$70 million.

The long term financing will be by way of an Altamont Consortium term loan, a convertible note, and a revolving credit facility provided by GE Capital.

"This financing package is intended to provide Billabong with a flexible capital structure to allow it to stabilise the business, address its cost structure, and pursue a strategy to grow the business," the company said in a statement.