Under Armour, looking to expand, borrows $325M

Under Armour is not going away.

[format] The company has spent the last year signing huge endorsement deals (i.e. Tom Brady), enjoying their first year of $1 billion+ revenue, and a large showing at college football’s National Championship game. They’ve also seen their stock hit a high of $72.50 on April 1st. [/format]

All of that success means one thing: its time to borrow some money…to expand.

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In a filing with the Securities and Exchange Commission filed Monday, Under Armour (NYSE: UA) said it is entering into a credit agreement with a consortium of banks including PNC Bank, SunTrust Bank and Bank of America for $300 million. It struck a separate term loan for $25 million to buy its Tide Point headquarters. (Ed. — its new corporate headquarters)

The credit agreement replaces a previous $200 million loan and has a term of four years, according to the SEC document. (via Baltimore Business Journal)

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Companies typically borrow money when they’re in dire straits or when they’re about to make a “power move”. In Under Armour’s case, it appears as if they’re going to continue the pattern they’ve established over the past year; carefully crafted moves that look to expand their market share.

[format] A company that sponsored college football’s national championship team and signed one of the NFL’s highest-profile QB’s with an extra $300 million dollars to spend?[/format]

It should be interesting to see what Under Armour has done by the time we reach April 2012.