Under Armour issues bonds worth $400m
Under Armour, the US sportswear brand, has issued $400 million in bonds, maturing in 2024, in an effort to bolster liquidity during the coronavirus pandemic.
The company has said it will use a portion of the proceeds to pay down debt under a revolving credit facility as well as other corporate expenses.
To mitigate the impact of the global health emergency on its business, the company already approved a contingency plan last month which included laying off 600 staff members at its USA-based distribution centres.
In addition, the brand cut the salaries of its leadership team and board members by 25 per cent, while deciding not to continue with plans to open a flagship store in New York.
Under Armour recently announced it suffered a 23 per cent drop in revenue for the first quarter of 2020 and is anticipating a further decrease of up to 60 per cent in the second quarter due the impact of the pandemic.
The brand posted revenue of $930 million in the quarter to 31 March, down from $1.2 billion in the same period in 2019.
The company is predicting another significant drop in the second quarter as most of its stores remain closed.
Chief financial officer Marc Bergman said around 80 per cent of Under Armour’s business around the world is currently shut down.