Under Armour, Inc. (NYSE: UA, UAA) has announced its intention to offer $400 million aggregate principal amount of senior notes due 2030 in a private offering exempt from registration under the Securities Act of 1933. The notes will be senior, unsecured obligations of Under Armour and will bear interest semiannually in arrears.
The company plans to use the net proceeds from the offering, along with borrowings under its amended revolving credit agreement, cash on hand, or a combination thereof, to redeem, repurchase, repay, or retire all $600 million in aggregate principal amount of its outstanding 3.25% senior notes due 2026 at or prior to maturity.
It's important to note that this announcement is neither an offer to sell nor a solicitation of an offer to buy the notes or the related guarantees. The offer and sale of the notes and the related guarantees have not been registered under the Securities Act or the securities laws of any jurisdiction.
As of the latest financial reporting period, Under Armour's total debt stands at $2.3 billion, an increase from the previous period's $2.1 billion. Additionally, the company's cash and cash equivalents have decreased to $318 million from $410 million in the prior period.
Under Armour's operating income has experienced a decline from $262 million to $245 million compared to the previous period. Furthermore, the company's net income has dropped to $152 million from $183 million in the prior period.
Moreover, the company's revenue has seen a decrease from $1.2 billion to $1.1 billion since the last reporting period. This decline in revenue may be attributed to various factors, including changes in consumer demand, competitive pressures, and global economic conditions.
It's important to consider the potential impact of the proposed offering of senior notes due 2030 on the company's capital structure and financial flexibility in the future. This move may provide Under Armour with the necessary resources to address its outstanding debt obligations and support its strategic initiatives. However, the success of the offering and its terms will significantly influence the company's financial position moving forward. As a result of these announcements, the company's shares have moved -3.51% on the market, and are now trading at a price of $6.60. Check out the company's full 8-K submission here.
