Under Armour 2008 Annual Report Download - page 70

Prior to amending and restating the revolving credit facility in December 2006, the Company was party to a
revolving credit facility of $75.0 million that was to terminate in 2010. Interest rates and covenants under this
financing agreement were similar to the interest rates and covenants described above.
The weighted average interest rate on the balances outstanding under this revolving credit facility was 3.7%
and 6.3% for the years ended December 31, 2008 and 2007, respectively. No balance was outstanding during the
year ended December 31, 2006.
Long Term Debt
In March 2005, the Company entered into an agreement to finance the acquisition or lease of up to $17.0
million in qualifying capital investments. Loans under this agreement are collateralized by a first lien on the
assets acquired. The agreement is not a committed facility, with each advance under the agreement subject to the
lender’s approval. In March 2008, the lender agreed to increase the maximum financing under the agreement to
$37.0 million.
In May 2008, the Company entered into an additional agreement to finance the acquisition or lease of up to
$40.0 million in qualifying capital investments. Loans under this additional agreement are collateralized by a first
lien on the assets acquired. This additional agreement is not a committed facility, with each advance under the
agreement subject to the lender’s approval.
These agreements include a cross default provision whereby an event of default under other debt
obligations, including the revolving credit facility agreement, is considered an event of default under these
agreements. Through December 31, 2008, the Company has financed $33.0 million of property and equipment
under these agreements. As of December 30, 2008 and 2007, the outstanding principal balance was $20.1 million
and $13.4 million, respectively, under these agreements. Currently, advances under these agreements bear
interest rates which are fixed at the time of each advance. The weighted average interest rate on outstanding
borrowings was 6.1%, 6.5% and 6.3% for the years ended December 31, 2008, 2007 and 2006, respectively. The
terms of the Company’s new revolving credit facility (see Note 18 for a further discussion of the new revolving
credit facility) limit the total amount of additional financing under these agreements to $35.0 million.
The following is a schedule of future principal payments on long term debt as of December 31, 2008:
(In thousands)
2009 $ 7,072
2010 7,167
2011 3,647
2012 1,966
2013 and thereafter 281
Total future principal payments on long term debt 20,133
Less current maturities of long term debt (7,072)
Long term debt obligations $13,061
The Company monitors the financial health and stability of its lenders under the revolving credit and long
term debt facilities, however current significant instability in the credit markets could negatively impact lenders
and their ability to perform under their facilities.
Included in interest income (expense), net for the years ended December 31, 2008, 2007 and 2006 was
interest expense, including amortization of deferred financing costs, under the revolving credit facility and long
term debt agreements of $1.5 million, $0.8 million and $0.8 million, respectively.
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