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Report: Under Armour Planning Bond Offering
Capital Markets, Lifestyle
There is arguably no professional athlete more popular stateside right now than Stephen Curry, the otherworldly point guard and shot maestro for the Golden State Warriors, who are currently marching toward their second straight NBA championship.
Curry also happens to be the face of sports apparel company Under Armour Inc., which Bloomberg reports today is prepping a debut bond offering. Citing an anonymous “person familiar with the matter,” Bloomberg says Under Armour is planning to sell $500 million of 10-year bonds that could yield roughly 1.65 percentage points above comparable government debt.
According to Bloomberg, citing a regulatory filing from Under Armour, the company is planning to use proceeds from the sale to repay debt under its revolving credit facility. S&P Global Ratings indicated in a statement that it assigned a BBB- rating to the debt.
So will Under Armour be able to ride Steph Curry’s global popularity on the basketball court to success with Wall Street? While the company has hit some bumps this year — Bloomberg notes Under Armour cut its earnings forecast last week and lost two top executives last month — shares rose 1.7 percent this morning.
If I were at Under Armour, I’d be singing Drake’s “0 to 1oo” right about now: I been Steph Curry with the shot/Been cookin’ with the sauce, Chef Curry with the pot, boy.
Or, uh, something like that.