Adidas AG said it reached an agreement with the holders of its 400 million euro ($599 million) convertible bond to swap their debt for shares. All of the bondholders exercised their conversion rights, Adidas said, which means the company will issue about 15.68 million new shares.
The company said this development corresponds to management's original
expectation that, in light of the current adidas AG share price, most
or all bondholders would exercise their conversion rights.
As a result of the conversion, adidas AG will reduce its net debt by
about EUR 400 million and increase its equity in the same amount. This
development will contribute to the early achievement of the Company's
medium-term target of financial leverage below 50% by year-end 2009.