UPDATE 1-Adidas gets closer to reaching debt target early

* Adidas redeems 400 mln eur convertible bond early

* Cuts debt, contributing to reaching gearing below 50 pct

(Adds detail and background)

FRANKFURT, Nov 10 (Reuters) - Adidas (ADSG.DE) got a step closer to reaching its mid-term debt-level target by the end of the year as all of the bondholders of its 400 million euro ($599 million) convertible bond decided to swap their debt for shares.

All of the bondholders exercised their conversion rights, Adidas said on Tuesday, which meant that the world's second-largest sports goods maker after Nike (NKE.N) will issue about 15.68 million new shares.

Adidas thereby cut its debt by about 400 million. The new shares will be entitled to dividends from this year.

Adidas said last week it may bring its gearing ratio to below 50 percent by the end of the year -- initially a medium term target -- given a similar cash flow development for the rest of the year and a successful bond redemption. [nL4343623]

(Reporting by Maria Sheahan)

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