Deckers Corp. has completed the sale of 1.5 million company shares for net proceeds of $35.2 million, and has used the proceeds to substantially eliminate company debt. Deckers paid in full its $7 million subordinated note issued to the Peninsula Fund, and the $7 million term loan from Comerica Bank.

Perhaps the most noteworthy pay-out was the $13 million subordinated note held by Mark Thatcher as part of his consideration for the company’s acquisition of Teva, which Thatcher founded. The note, at 7% plus an additional 2% upon repayment, was not due until 2008.

As part of his original agreement with Deckers, Thatcher was able to appoint one Deckers board member – John Kalinich – who has served for the past year. Deckers said that Kalinich has fulfilled his contractual obligation and will step down from the Board immediately, but he will continue in his current position with the company as VP and Director of retail licensing.