adidas-Solomon sells €400 million convertible at 2.5%, up 40%

Nashville, Aug. 28 - adidas-Salomon International Finance BV, a unit of adidas-Salomon AG, sold €400 million of 15-year convertible bonds to yield 2.5% with a 40% initial conversion premium - at the aggressive end of yield talk and cheap end of premium guidance.

Joint bookrunning managers are Deutsche Bank and Dresdner Kleinwort Wasserstein.

The deal, which launched and priced Wednesday, had been talked to yield 2.4% to 2.9% with a 40% to 45% initial conversion premium.

The 15-year bonds will be non-callable for six years, then with a 130% trigger until October 2012 and a 115% trigger until October 2015.

"Improving our financial efficiency and flexibility are key parts of our strategy," said Robin Stalker, adidas-Salomon's chief financial officer.

"This offering allows adidas-Salomon to benefit from current opportunities in the convertible market and to secure attractive long-term financing." Stalker added, "We have chosen a structure that ensures a high level of protection for existing shareholders."

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