The Billabong International Limited (ASX: BBG) share price has surged over 20% higher this week, including another 7.9% today.
Firstly, it was news on Wednesday that the apparel retailer had finally settled a shareholder class action claim for $45 million – as we noted here.
In short, shareholders had claimed the company had not met its continuous disclosure obligations in 2011 over a series of profit downgrades. As part of the settlement, Billabong admitted no liability on its part.
Then on Wednesday, Billabong announced that entered into a new US$100 million asset-based credit facility with Bank of America Merrill Lynch. That replaced a GE Capital facility from 2013, which was charging above market rates. The new debt facility should see Billabong pay low interest rates – and could prove to be a boost to earnings.
Late last month, Billabong also announced that it had sold its skate hardware brand Sector 9 for around US$12 million – allowing the company to focus on its key brands of Billabong, RVCA and Element.
Here's the chart:
Since 2013, Billabong's share price has more than tripled as the surfwear retailer recovered from self-inflicted wounds.
Foolish takeaway
Billabong's share price may have more room to run if it can continue generating positive results.
