Adidas AG announces that the company is redeeming the €400 million convertible bond, issued in August 2003, effective November 23, 2009. The move will help reduce adidas' net debt and increase its equity, bringing the company closer to its declared goal of financial leverage below 50%.
In accordance with the Terms and Conditions of the Bonds, outstanding bonds will be redeemed on this date at their principal amount plus interest accrued as far as bondholders do not exercise their conversion rights by the end of November 9, 2009.
In light of the current adidas AG share price, the company expects that most or all bondholders will exercise their conversion rights.
If all bondholders exercise their conversion rights, this would result in up to 15,684,313 new shares being issued from the company's Contingent Capital 2003/II. The new shares will be entitled to dividends as of the beginning of the financial year 2009.