Australian surfwear retailer Billabong International Ltd. entered into binding agreements with certain entities affiliated with Centerbridge Partners, L.P. and Oaktree Capital Management, L.P. in relation to a long term financing.

Billabong said the long-term refinancing would allow the company to stabilise its business, address its cost structure and grow the business.

The company said that the new agreement will enable Billabong to repay in full its existing $294 million bridge loan facility from the Altamont Consortium.

The agreements include a six-year loan of A$386 million (referred to as the new-term debt); a A$135 million equity placement to the C/O Consortium; a A$50 million rights issue available to shareholders other than the C/O Consortium; and 29.6 million options issued to the C/O Consortium exercisable at A$0.50 per share.

It also involves issuing new shares and options to Centerbridge and Oaktree that will result in the pair owning up to 40.8% of Billabong's stock.

In addition to this financing, Billabong retains the previously announced commitment from GE Capital to provide an asset-based multi-currency revolving credit facility of up to $140 million.

"As Billabong continues to restructure its operations globally, the need for immediate long-term funding certainty and a strong financial base from which to reinvigorate an iconic group of brands is best met by entering into this agreement now" Billabong Chairman Ian Pollard stated.

The company also announced that it has appointed Neil Fiske as Chief Executive Officer and Managing Director of Billabong.

Fiske was most recently a senior retail adviser to Canadian private equity firm Onex and is a former chief executive at outdoors clothing and gear company Eddie Bauer.