S&P rates Reebok converts BBB

Standard & Poor's said it assigned its BBB rating to Reebok International Ltd.'s new $300 million senior unsecured convertible debentures due 2024.

At the option of the initial purchasers, the size of the proposed debt offering may be increased by as much as $50 million. Net proceeds of the proposed offering will be used for general corporate purposes, which may include refinancing Reebok's existing $250 million senior unsecured convertible debentures due 2021, repurchasing common stock, or financing acquisitions - including the proposed purchase of The Hockey Co., a manufacturer of hockey equipment and apparel.

S&P has also affirmed Reebok's BBB corporate credit and senior unsecured debt ratings. The ratings on The Hockey Co., including its B corporate credit and senior secured debt ratings, remain on CreditWatch with positive implications.

Reebok's outlook is stable.

S&P said the ratings on Reebok reflect its well-recognized brand name, improved product portfolio, and good cash flows and liquidity position. These factors are somewhat offset by the high degree of fashion risk in the athletic footwear market and significant competition in Reebok's core segments.

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