Adidas AG, the world’s second-biggest sporting-goods maker, said it signed a 500 million-euro ($625 million) credit line to refinance.
The five-year revolving credit can be extended by as many as two years and will replace the Herzogenaurach, Germany-based company’s 2 billion-euro facility signed in October 2005 that expires this year, according to a statement today.
Adidas agreed to pay interest of 40 basis points more than the euro interbank offered rate and a 14 basis-point commitment fee for the financing coordinated by Bayerische Landesbank, HSBC Holdings Plc and Mizuho Financial Group Inc. the company said. A basis point is 0.01 percentage point.
“Throughout the last few years, we have continuously strengthened our capital structure and diversified our financing,” said Robin Stalker, chief financial officer of Adidas. “The ongoing strength of our cash flow generation allows us to reduce the size of the new revolving credit facility.”
Citigroup Inc., Deutsche Bank AG, Standard Chartered Plc, Bank of Tokyo-Mitsubishi UFJ Ltd., JPMorgan Chase & Co., Bank of America Corp. and UniCredit SpA joined the deal as bookrunners, according to the statement.
Adidas said on June 21 it expects record soccer-related sales of more than 1.6 billion euros this year, boosted by the European Championship tournament in Ukraine and Poland.