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Recent IPO Amer Sports is tapping the high-yield bond market with $600 million deal

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Amer Sports Inc., the Finnish sportswear company that went public last week, on Tuesday launched an offering of $600 million of seven-year high-yield bonds.

The Helsinki-based company
AS,
-2.34%

and some of its units have also entered a new credit agreement, under which they will have a new $600 million term loan facility, a new EURg00 million term loan facility and a new revolving credit facility that will initially be $710 million.

Proceeds from the bond deal, along with proceeds from the new credit agreements, are earmarked to repay existing credit facilities.

The news surprised investors coming just days after Amer Sports made its debut on the New York Stock Exchange with a deal that priced below the proposed price range at $13 a share, but ended its first day of trade up 3%.

The stock closed Monday at $14.60.

With 105 million shares in the IPO, Amer Sports raised about $1.37 billion with 21 underwriters, including Goldman Sachs, BofA Securities, JPMorgan and Morgan Stanley.

Amer Sports owns outdoor brands Arc’teryx, Salomon and Wilson and operated 261 stores globally as of Sept. 30.

S&P Global Ratings assigned the credit a BB rating that is two notches into speculative-grade, or high-yield, status.

The company reported 2022 revenue of $3.55 billion, up from $2.4 billion in 2020, with a compound annual growth rate of 20.4%. Its net loss grew to $252.7 million from $237.2 million during the same time frame.

Principal shareholders of Amer Sports include FountainVest Partners, Anta Sports Product Ltd., Tencent Holdings Ltd. and Anamered investments Inc., which is an entity affiliated with billionaire Dennis J. “Chip” Wilson, the founder of Lululemon Athletica Inc.
LULU,
-1.23%

The Renaissance IPO ETF
IPO
 has gained 16.6% in the last 12 months, while the S&P 500
SPX
has gained 20%.

For a preview of 2024 IPOs: Reddit, Shein and Stripe may lead a revived IPO market in 2024

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Additional reporting by Steve Gelsi

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