AD-HOC: adidas-Salomon Launches a 400 Million Euro Convertible Bond Offering
Herzogenaurach, August 27, 2003 - Following approval by the Supervisory Board, the Executive Board of adidas-Salomon AG today decided to launch a 400 million euro convertible bond offering. The bond's maturity is set at 15 years and is convertible into approximately four million shares of adidas-Salomon AG.
Proceeds from the offering will allow the Group to optimize its debt structure and financing terms.
The convertible bond will be offered with a coupon of 2.4% to 2.9% and a conversion premium of 40% to 45% solely to institutional investors outside the United States, Canada and Japan. The coupon and the conversion premium will be determined via a bookbuilding process to take place on August 27. The convertible bond will be issued through adidas-Salomon International Finance BV, a Dutch subsidiary of adidas-Salomon AG, and will be guaranteed by adidas-Salomon AG. Admittance for trading is intended in October 2003 at the Frankfurt Stock Exchange. The convertible bond is not callable until October 2009 and callable thereafter by the issuer, subject to a 130% trigger between October 2009 and October 2012 and subject to a 115% trigger between October 2012 and 2015, unconditionally thereafter.
Deutsche Bank und Dresdner Kleinwort Wasserstein are acting as joint lead managers and joint bookrunners.
This notice is not an offer for sale or a solicitation of an offer to purchase the above-mentioned convertible bond or any other security of adidas-Salomon AG.
"Improving our financial efficiency and flexibility are key parts of our strategy," said Robin Stalker, adidas-Salomon's Chief Financial Officer. "This offering allows adidas-Salomon to benefit from current opportunities in the convertible market and to secure attractive long-term financing." Further, stated Stalker, "We have chosen a structure that ensures a high level of protection for existing shareholders."