adidas AG has this week signed a €500 million revolving credit facility. The new transaction was syndicated as the group’s €2 billion revolving credit facility established in October 2005 expires this year. According to a release from adidas, ‘the facility secures the group’s financial flexibility and ensures long-term cost-effective financing.’
As adidas notes, ‘The facility was substantially oversubscribed with the support of all the existing syndicate banks.’
“The success of the transaction shows once more the strong standing the adidas group enjoys in the international capital markets,” said Robin Stalker, CFO of adidas AG. “Throughout the last few years, we have continuously strengthened our capital structure and diversified our financing. The on-going strength of our cash flow generation allows us to reduce the size of the new revolving credit facility.”
The new five-year facility incorporates two one-year extension options exercisable at the end of the first and second year. Bayerische Landesbank, HSBC and Mizuho Corporate Bank are acting as Coordinators of the facility; and, together with Citigroup Global Markets, Deutsche Bank, Standard Chartered Bank, The Bank of Tokyo-Mitsubishi UFJ, JP Morgan, Bank of America Securities and UniCredit Bank, as Bookrunners.
Syndication was completed among a select group of adidas AG’s relationship banks.
