Apparel company Quiksilver has agreed a deal with its banking partners to consolidate the company's European debt obligations.

The agreement, which follows a similar refinancing operation in the US in June this year, involves consolidating European debt into a new four-year facility of EUR170m (US$245m) in term loans.

It also consists of a letter of credit facility with a capacity of EUR40m, and a EUR58m revolving line of credit, Quiksilver said.

The deal is likely to close before the end of September, subject to conditions.

The agreement also involves the European banking group extending the maturity of a EUR55m line of credit, which will be absorbed into the new facility.

Meanwhile, in a separate agreement, French bank Société Générale has extended the maturity of a EUR50m term loan due to mature in July 2010 until July 2013.

Quiksilver also announced the closure of two previously announced refinancing agreements: private equity firm Rhône has funded a five-year loan of US$150m, while Bank of America and GE Capital have jointly funded a new three-year $200m asset-based credit facility.

"We have been working to improve our capital structure for some time and are very pleased to have completed this comprehensive refinancing of our global business," said Robert B McKnight Jr, Quiksilver chairman, CEO and president.

"With the European commitment in place and the funding from Rhône and our US bank group in hand, we can now fully concentrate our efforts on streamlining our business and making great product within our three great brands - Quiksilver, Roxy and DC."