March 14, 2012 / 8:58 AM / in 6 years

UPDATE 1-Adidas plans convertible bond with 0-0.5 pct coupon

* To issue convertible bond of up to 500 million euros

* Bond to mature on June 14, 2019

* Convertible into 6.3 million new and existing shares

* Adidas shares down 0.8 percent (Adds further details)

FRANKFURT, March 14 (Reuters) - Sportswear firm Adidas AG said on Wednesday it is to issue a convertible bond with a coupon of between zero and 0.5 percent to raise up to 500 million euros ($655.45 million).

The bond, to mature on June 14, 2019, will be convertible into about 6.3 million new and existing shares in the German firm, with a conversion premium of 37-42 percent.

“This offering allows us to benefit from current low-cost financing opportunities in the convertible market and to secure attractive long-term financing,” Chief Financial Officer Robin Stalker said in a statement.

Adidas said it will use the proceeds to pay down debt and pre-finance maturing debt as well as for general financing and corporate purposes, without being more specific.

The company has an outstanding 500 million euro bond, carrying a 4.75 percent coupon, maturing on July 14, 2014.

UniCredit is coordinating the issue, and UniCredit, Citigroup and Deutsche Bank are joint bookrunners. ($1=0.7628 euros) (Reporting by Maria Sheahan; Editing by Greg Mahlich)

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