Under Armour, Inc. has entered into a credit agreement covering  a total loan commitment of $325 million comprised of a revolving credit facility commitment of $300 million and a term loan commitment of $25 million. The credit line replaces a $200 million facility. Part of the borrowings will be used to finance a portion of the purchase price for the acquisition of part of the office complex at the company's corporate headquarters.

In a filing with the Securities and Exchange Commission, Under Armour 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. A separate term loan for $25 million was reached to buy its Tide Point headquarters.

The credit agreement replaces the company's
existing $200 million revolving credit facility and has a term of four years, according to the SEC filing.

The term loan commitment expires May 29, 2011. Subject to certain conditions, the Tide Point acquisition is expected to close by that date.

The company said in January it has reached a deal to buy Tide Point for $60.5 million and planned to close on the purchase this spring. It has about 125,000-square-feet of space in the business park, which was converted from the former Procter & Gamble soap plant in 1998.

The $300 million revolving credit commitment amount under the credit facility may be increased to up to $350 million, subject to certain conditions. The facility may be used for working capital and general corporate purposes and is collateralized by substantially all of the assets of the company and certain of its domestic subsidiaries (other than their trademarks and the corporate office complex that the company expects to purchase) and by a pledge of 65% of the equity interests of certain of the company's foreign subsidiaries. Up to $5 million of the facility may be used to support letters of credit.

The credit facility bears interest based on the daily balance outstanding at LIBOR (with no rate floor) plus an applicable margin (varying from 1.25% to 1.75%) or, in certain cases a base rate (based on PNC's Prime Rate or as otherwise specified in the Credit Agreement, with no rate floor) plus an applicable margin (varying from 0.25% to 0.75%). The credit facility also carries a commitment fee equal to the available but unused borrowings multiplied by an applicable margin (varying from 0.25% to 0.35%). The applicable margins are calculated quarterly and vary based on the Company's leverage ratio as set forth in the Credit Agreement.

The lending group included PNC Bank, National Association, as
Administrative Agent, SunTrust Bank, as Syndication Agent, Bank of
America, as Documentation Agent.