Under Armour, Inc. announced that it has priced $440 million aggregate principal amount of its 1.50 percent convertible senior notes due 2024, which represents an increase of $40 million from the offering size previously announced.

Under Armour has also granted the initial purchasers of the notes an option to purchase, within a thirteen-day period beginning on, and including, the first date on which the notes are issued, up to an additional $60 million aggregate principal amount of the notes. The sale of the notes is expected to close on May 27, 2020, subject to customary closing conditions.

The notes will be senior, unsecured obligations of Under Armour, bearing interest at a rate of 1.50 percent per annum, payable semiannually in arrears. The notes will mature on June 1, 2024, unless they are redeemed, repurchased or converted prior to such date.

Under Armour estimates that the net proceeds from the offering will be approximately $429.1 million (or approximately $487.8 million if the initial purchasers exercise their option to purchase additional notes in full).

The company said it would use proceeds of the deal to fund capped call transactions that will reduce dilution when the notes are converted into equity. The remainder will be used to pay down debt under a revolving credit facility.

Further details on the offering are here.

Photo courtesy Under Armour