Blackstone has reached an agreement to hand over control of Jack Wolfskin to a group of lenders in a debt for equity swap. Such an agreement around the German outdoor brand was already reported several weeks ago but it was apparently finalized last week. Under the terms of the deal, the lenders will write off €255 million and reduce Jack Wolfskin's debt from €365 million to €110 million, while extending maturity to 2022. But at the same time, the lenders will pump €25 million into the company as a super senior loan, which will help to reinforce its liquidity position. The interests of the lenders in Jack Wolfskin are grouped together under a holding company in Luxembourg. A majority of the shares will be held jointly by Bain Capital Credit, HIG/Bayside Capital and CQS. Blackstone acquired Jack Wolfskin in a leveraged buy-out in 2011 but the company has been under pressure from the relative weakness of the German outdoor market, among other issues. Melody Harris-Jensbach, the group's chief executive, said in a statement that the stronger liquidity and reduced debt burden formed a sound basis for further expansion, after the group's sales increase by about 12 percent to €351 million in the fiscal year until the end of September 2016. She added that Jack Wolfskin was starting to see growth again in the German-speaking countries, as well as in its focus markets. More in The Outdoor Industry Compass.

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