Reebok $300 million overnighter talked at 1.75-2.25%, up 35-40%

By Ronda Fears

Nashville, April 26 - Reebok International Ltd. was in the market with an overnight $300 million offering of 20-year convertible notes talked to yield 1.75% to 2.25% with a 35% to 40% initial conversion premium. Proceeds are earmarked to take out all or part of its 4.5% convertibles.

Credit Suisse First Boston is lead manager of the Rule 144A offering.

The senior notes will be non-callable for five years with puts in years five, 10 and 15. There is a 125% contingent conversion trigger.

A $50 million greenshoe is available.

The Canton, Mass.-based shoemaker intends to use proceeds to refinance existing debt, repurchase stock and finance acquisitions, including the proposed purchase of The Hockey Co. Holdings Inc., as well as for general corporate purposes.

Reebok currently intends to redeem its $250 million of 4.25% convertible debentures due 2021, subject to completion of the offering and market conditions.

On Monday, Reebok shares closed off 43 cents, or 1.12%, to $37.97. In after-hours trading, the stock was down another 77 cents, or another 2%.

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