Shares in surfwear group Billabong have surged over 7% this morning after the company announced a new recapitalisation agreement with the Centerbridge-Oaktree consortium.
The company said in a statement to the Australian Securities Exchange the new deal would also include a change-up of the current board.
The deal involves a six-year loan of $385 million, a $135 million equity placement and a $50 million rights issue.
In a statement the company said the new deal meets the “need for immediate long-term funding certainty and strong financial base”.
Neil Fiske has also been named as the company’s new chief executive and managing director.
Brickworks has recorded an increase in full year net profit with the company also expecting better results in the year ahead.
“Australia is yet to see a broad based recovery in detached housing construction, however most forward indicators are now positive,” the group said in a statement.
Net profit rose by 27% to $100 million, up from $78.9 million in the previous year.
Retail group Oroton has announced a 10.8% increase in net profit for the full year to $27.5 million, despite the challenging environment.
The company said revenue also increased 0.8% to $186.2 million, although noted the next year is expected to contain more structural transition.
“We will also continue to review other possible strategic options including further partnerships, licence agreements and/or acquisitions,” Oroton said.
The Australian sharemarket has risen this morning after the Federal Reserve announced in the United States it will not cut back on stimulus measures.
The benchmark S&P/ASX200 index was up 52 points or 1% to 5290.6 at 12.00 AEST, while the Australian dollar rose above US95 cents.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
