ManpowerGroup 2006 Annual Report Download - page 55

Manpower฀2006฀Annual฀Report ฀ 51
Notes฀to฀Consolidated฀Financial฀Statements฀
08.
DEB T
Information฀concerning฀Short-Term฀Borrowings฀is฀as฀follows:
December฀31 2006 2005
Short-term฀borrowings $฀ 30.2 $฀ 12.4
Weighted-average฀interest฀rates 10.8% 8.7%
We฀maintain฀separate฀bank฀facilities฀with฀financial฀institutions฀to฀meet฀working฀capital฀needs฀of฀our฀subsidiary฀operations.฀As฀of฀
December฀31,฀2006,฀such฀facilities฀totaled฀$313.3,฀of฀which฀$283.1฀was฀unused.฀We฀have฀no฀significant฀compensating฀฀
balance฀requirements฀or฀commitment฀fees฀related฀to฀these฀lines.฀Due฀to฀limitations฀on฀subsidiary฀borrowings฀in฀our฀revolving฀
credit฀agreement,฀additional฀borrowings฀of฀$116.8฀could฀be฀made฀under฀these฀facilities฀as฀of฀December฀31,฀2006.
A฀summary฀of฀Long-Term฀Debt฀is฀as฀follows:
December฀31 2006 2005
Euro-denominated฀notes:
 300฀due฀June฀2012 $฀ 394.6 $฀ 353.8
 200฀due฀June฀2013 262.4 —
 200฀due฀July฀2006 —237.0
Revolving฀credit฀agreement:
฀ Euro-denominated฀borrowings,฀at฀a฀rate฀of฀5.71% 132.0 118.5
Other 4.0 13.3
793.0 722.6
Less฀–฀current฀maturities 1.8 247.6
Long-term฀debt $฀ 791.2 $฀ 475.0
Euro฀Notes
On฀June฀14,฀2006,฀we฀offered฀and฀sold฀200.0฀aggregate฀principal฀amount฀of฀4.75%฀notes฀due฀June฀14,฀2013฀(the฀“200฀
Notes”).฀The฀net฀proceeds฀of฀198.1฀($249.5)฀were฀invested฀in฀cash฀equivalents฀until฀July฀26,฀2006,฀when฀they฀were฀used฀to฀฀
repay฀our฀200.0฀notes฀due฀July฀2006฀(the฀“1999฀200฀Notes”)฀as฀described฀below.฀The฀200฀Notes฀were฀issued฀at฀a฀price฀of฀
99.349%฀to฀yield฀an฀effective฀interest฀rate฀of฀4.862%.฀The฀discount฀of฀1.3฀($1.6)฀will฀be฀amortized฀to฀interest฀expense฀over฀the฀
term฀of฀the฀200฀Notes.฀Interest฀is฀payable฀annually฀on฀June฀14฀beginning฀in฀2007.฀The฀200฀Notes฀are฀unsecured฀senior฀฀
obligations฀and฀rank฀equally฀with฀all฀of฀our฀existing฀and฀future฀senior฀unsecured฀debt฀and฀other฀liabilities.฀We฀may฀redeem฀the฀
200฀Notes,฀in฀whole฀but฀not฀in฀part,฀at฀our฀option฀at฀any฀time฀for฀a฀redemption฀price฀determined฀in฀accordance฀with฀the฀term฀of฀
the฀200฀Notes.฀The฀200฀Notes฀also฀contain฀certain฀customary฀restrictive฀covenants฀and฀events฀of฀default.
Our฀1999฀200฀Notes฀($254.3),฀were฀retired฀on฀July฀26,฀2006฀with฀the฀net฀proceeds฀from฀the฀200฀Notes฀and฀other฀available฀cash.
On฀June฀1,฀2005,฀we฀offered฀and฀sold฀300.0฀aggregate฀principal฀amount฀of฀4.50%฀notes฀due฀June฀1,฀2012฀(the฀“300.0฀
Notes”).฀Net฀proceeds฀of฀approximately฀297.7฀($372.3)฀were฀used฀to฀repay฀a฀portion฀of฀the฀outstanding฀indebtedness฀under฀
our฀revolving฀credit฀facility฀and฀U.S.฀Receivables฀Facility,฀to฀fund฀our฀share฀repurchase฀program,฀and฀for฀general฀corporate฀฀
purposes.฀The฀300.0฀Notes฀were฀issued฀at฀a฀price฀of฀99.518%฀to฀yield฀an฀effective฀interest฀rate฀of฀4.58%.฀The฀discount฀of฀
1.4฀($1.8)฀will฀be฀amortized฀to฀interest฀expense฀over฀the฀term฀of฀the฀notes.฀Interest฀is฀payable฀annually฀on฀June฀1.฀The฀300.0฀
Notes฀are฀unsecured฀senior฀obligations฀and฀rank฀equally฀with฀all฀of฀our฀existing฀and฀future฀senior฀unsecured฀debt฀and฀other฀฀
liabilities.฀We฀may฀redeem฀the฀300.0฀Notes,฀in฀whole฀but฀not฀in฀part,฀at฀our฀option฀at฀any฀time฀for฀a฀redemption฀price฀as฀defined฀
in฀the฀agreement.฀These฀notes฀also฀contain฀certain฀customary฀restrictive฀covenants฀and฀events฀of฀default.
The฀300.0฀Notes,฀200฀Notes,฀and฀other฀Euro-denominated฀borrowings฀have฀been฀designated฀as฀a฀hedge฀of฀our฀net฀investment฀
in฀subsidiaries฀with฀a฀Euro฀functional฀currency.฀Since฀our฀net฀investment฀in฀these฀subsidiaries฀exceeds฀the฀respective฀amount฀of฀
the฀designated฀borrowings,฀all฀translation฀gains฀or฀losses฀related฀to฀these฀borrowings฀are฀included฀as฀a฀component฀of฀
Accumulated฀Other฀Comprehensive฀Income.