Frankfurt, Aug 27: Adidas-Salomon said on Wednesday it was launching a 400-million euro ($435 million) bond convertible into around four million of its shares to help improve its debt situation and financing terms. Adidas, the world's second biggest sportswear firm by sales after U.S. giant Nike, said in a statement that the bond, which has a 15-year maturity, would carry a coupon of 2.4 to 2.9 percent and a conversion premium of 40-45 percent.
"Improving our financial efficiency and flexibility are key parts of our strategy," Adidas finance chief Robin Stalker said in the statement.
"This offering allows Adidas to benefit from current opportunities in the convertible market and to secure attractive long-term financing."
Adidas has almost three times as much debt as equity, which puts it in the ten most highly geared firms in its European index, according to Reuters data. It has a mid-term plan to reduce its debt pile by at least 100 million euros per year.
Bureau Report