Surf company Quiksilver secures $150m loan from private equity firm Rhône

The five-year senior secured term loan will be used to develop the Quiksilver, Roxy and DC brands, as well as improving the overall profitability of the company’s global business. Quiksilver will also appoint two new directors, chosen by Rhône, to its board of directors.

“Rhône is a strong strategic partner with an international presence and extensive experience investing in globally diversified businesses across a number of sectors. Our agreement with Rhône not only provides the financial stability necessary to complete our new Americas and European financing efforts, but it also allows us to improve our global business and increase the efficiency of our worldwide operations,” Robert McKnight, Jr., CEO, president and chairman of the board of Quiksilver, said.

“We are pleased to have addressed our liquidity concerns so that we can now sharpen our focus on streamlining the business and making great product within our three great brands,” he added.

The managing director and co-founder of Rhône, M Steven Langman, said, “Rhône is enthusiastic about this opportunity to partner with Quiksilver in the continued development of its leading brands. Bob has assembled a first-rate management team, and we are confident that the liquidity and support provided by Rhône will allow the company to implement its dynamic strategy.”

Rhône’s financial commitment is subject to Quiksilver reaching an agreement with its French lenders to consolidate its European debts into a new facility with set terms and interest rates. Bank of America and GE Capital have already agreed to refinance Quiksilver’s existing Americas facility in a new three-year $200m asset-based credit facility.
Quiksilver, headquartered in Huntington Beach, California, is the world’s leading outdoor sports lifestyle company with a presence in over 90 countries worldwide.

Rhône focuses on middle-market private equity investments in pan-European or trans-Atlantic businesses. The firm has offices in New York, London and Paris.

Copyright © 2009 AltAssets