Adidas revealed that it has successfully placed a $580 million bond to help infuse the brand with cash ahead of the upcoming World Cup and the restructuring of an existing maturity.
The German sportswear maker said on Tuesday that J.P. Morgan facilitated the bond transaction as coordinator along with BBVA, HSBC and Standard Chartered Bank AG serving as as joint active bookrunners while Citigroup, DZ BANK AG and UniCredit serving as passive bookrunners. The bond was set to reach maturity in May 2031 at a 3.50 percent interest rate.
Funds from the bond will be used for “general corporate purpose” along with the refinancing of an upcoming maturities on an existing $465 million bond that is due in October.
Meanwhile Adidas pivots to a busy second half of the year that includes being among the lead corporate sponsors of the upcoming World Cup in Canada, Mexico and the United States in June and July. The company reported last month that merchandise tied to the event helped push strong first quarter sales to a 14 percent boost in revenue to $7.72 billion
Adidas rode a wave of strong sales in the first quarter that were led by performance products and merchandise tied to its apparel sponsorship of the upcoming World Cup, with a 14 percent boost in sales to $7.72 billion. Apparel soared 31 percent while footwear was up 4 percent with increases in North America (12 percent), Greater China (17 percent), Latin America (26 percent) and Europe (31 percent) regions from the same period a year ago.
