Quiksilver, Inc. (NYSE:ZQK) today announced that it had amended and
extended its existing asset-based line of credit in the Americas region
under substantially better terms. The original credit line with joint
lead arrangers Bank of America Merrill Lynch and GE Capital funded on
July 31, 2009. Although the company currently has no borrowings under
the credit line, interest rates have been reduced by approximately 150
basis points and commitment fees have been reduced by approximately 50
basis points. The revised credit line has a capacity of $150 million and
the term has also been extended to cover 4 years, maturing on August 28,
In announcing its fiscal third quarter earnings today, the Company
reported that its total debt at July 31, 2010, had been reduced to
approximately $843 million and that it had approximately $167 million of
availability under its credit lines in addition to approximately $156
million of unrestricted cash at the end of the third quarter.
Quiksilver has positioned itself for better financing opportunities by
dramatically improving its capital structure over the past year. In
particular, in early August the company further reduced its debt by $140
million in a debt-for-equity exchange with its investment partner Rhône,
leaving Quiksilver with a current debt balance of approximately $700
Quiksilver, Inc. (NYSE:ZQK) is the world's leading outdoor sports
lifestyle company, which designs, produces and distributes a diversified
mix of branded apparel, footwear, accessories, snowboards and related
products. The Company's apparel and footwear brands represent a casual
lifestyle for young-minded people that connect with its boardriding
culture and heritage.
The reputation of Quiksilver's brands is based on outdoor action sports.
The Company's Quiksilver, Roxy, DC, Lib Tech and Hawk brands are
synonymous with the heritage and culture of surfing, skateboarding and
The Company's products are sold in over 90 countries in a wide range of
distribution, including surf shops, skate shops, snow shops, its
proprietary Boardriders Club shops and other company-owned retail
stores, other specialty stores and select department stores.
Quiksilver's corporate and Americas' headquarters are in Huntington
Beach, California, while its European headquarters are in St. Jean de
Luz, France, and its Asia/Pacific headquarters are in Torquay, Australia.
Forward looking statements:
This press release contains forward-looking statements including but
not limited to statements regarding the Company's financing activities
and other future activities. These forward-looking statements are
subject to risks and uncertainties, and actual results may differ
materially. Please refer to Quiksilver's SEC filings for more
information on the risk factors that could cause actual results to
differ materially from expectations, specifically the sections titled
?Risk Factors? and ?Forward-Looking Statements? in Quiksilver's Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
NOTE: For further information about Quiksilver, Inc., you are
invited to take a look at our world at www.quiksilver.com,
Vice President, Investor