#USA #Senior Notes #Baltimore #Debt Management #Under Armour

Under Armour Issues $400 Million in Senior Notes Due 2030

Under Armour, Inc., a leader in athletic performance apparel and footwear, has announced its intention to offer a private offering of $400 million in senior notes due 2030. This initiative is subject to market and other conditions and is part of the company's strategy to refinance existing debt. The senior notes will be unsecured obligations and bear interest semiannually.

The principal amount of the notes will be guaranteed on a senior unsecured basis by Under Armour's subsidiaries that currently back its revised revolving credit agreement. Critical to the offering are the rate of interest and other specific terms, which will be established through negotiations with potential purchasers.

Purpose of Funding

The proceeds from this offering are intended to be used in conjunction with existing cash and credit facilities to retire all $600 million of Under Armour's 3.25% Senior Notes due in 2026. This proactive step demonstrates Under Armour's commitment to maintaining a robust financial structure while optimizing debt.

Investment Risk and Offer Details

This public offering is exempt from registering under the Securities Act of 1933. Under Armour clarifies that this announcement doesn't represent an offer to sell or a solicitation for an offer to buy these notes. The issuance will be directed primarily to qualified institutional buyers, in line with Rule 144A of the Securities Act, and to potential investors in other jurisdictions under Regulation S, ensuring compliance with international security laws.

While Under Armour is aiming for beneficial terms, they acknowledge the potential risk involved. There is no guarantee that the offering will proceed as planned or yield favorable conditions.

Forward-Looking Statements

The company has included forward-looking statements which reference expectations regarding financial performance, the senior notes offering, with terms still under negotiation. Investors are urged to regard these forecasts with caution as they may be subject to risks and uncertainties that could lead to different outcomes than anticipated.

For additional insights into these risks, Under Armour points investors to its Annual Report on Form 10-K submitted to the SEC for the fiscal year ending March 31, 2025, where they discuss significant risk factors associated with such financial maneuvers.

About Under Armour

Founded and headquartered in Baltimore, Maryland, Under Armour has made its mark as an innovator in branded athletic apparel, footwear, and accessories since its inception. The brand aims to empower athletes with cutting-edge performance gear designed to enhance physical capability.

Through this latest financial maneuver, Under Armour is making a strategic move to bolster its financial health while sustaining its growth trajectory in a competitive sports marketplace. As they shift gears towards a new chapter in their financing strategy, all eyes will be on how this influences their overall market positioning in the coming years.