The adidas Group yesterday closed a $1 billion US private placement transaction. The new transaction improves the Groups financial flexibility and further extends its overall maturity profile. The proceeds of the transaction will be used to help finance the acquisition of Reebok International Inc.
The adidas Group was able to take advantage of strong demand in the US private placement market. The transaction volume was increased to $1 billion as a result of significant oversubscription, making this the largest US private placement out of Germany ever. A group of 34 institutional investors participated in 4 tranches with maturities of 3, 5, 7 and 10 years. The adidas Group capitalized on favorable conditions in the private placement market to achieve coupons of 5.20%, 5.25%, 5.34% and 5.44% across the respective maturities.
Bank of America and The Royal Bank of Scotland served as placement agents in connection with the private placement of the securities. Barclays Capital, HSBC Bank plc and HypoVereinsbank acted as advisors.
