ManpowerGroup 2007 Annual Report Download - page 55

52 Manpower 2007 Annual Report Notes to Consolidated Financial Statements
Notes To Consolidated Financial Statements
in millions, except per share data
08.
Debt
Information concerning Short-Term Borrowings is as follows:
December 31 2007 2006
Short-term borrowings $ 39.0 $ 30.2
Weighted-average interest rates 12.7% 10.8%
We maintain separate bank credit lines with fi nancial institutions to meet working capital needs of our subsidiary operations. As
of December 31, 2007, such credit lines totaled $338.7, of which $299.7 was unused. We have no signifi cant compensating
balance requirements or commitment fees related to these lines. Due to limitations on subsidiary borrowings in our revolving
credit agreement, additional borrowings of $258.8 could be made under these facilities as of December 31, 2007.
A summary of Long-Term Debt is as follows:
December 31 2007 2006
Euro-denominated notes:
€300 due June 2012 $ 436.6 $ 394.6
€200 due June 2013 290.5 262.4
Revolving credit agreement:
Euro-denominated borrowings, at a rate of 5.71% 145.9 132.0
Other 2.5 4.0
875.5 793.0
Less – current maturities 0.7 1.8
Long-term debt $ 874.8 $ 791.2
Euro Notes
On June 14, 2006, we offered and sold €200.0 aggregate principal amount of 4.75% notes due June 14, 2013 (the “€200.0
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 €200.0 Notes”) as described below. The €200.0 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) is being amortized to interest expense
over the term of the €200.0 Notes. Interest is payable annually on June 14. The €200.0 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 €200.0
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
€200.0 Notes. The €200.0 Notes also contain certain customary restrictive covenants and events of default.
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) is being 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 defi ned
in the agreement. These notes also contain certain customary restrictive covenants and events of default.
Our 1999 €200.0 Notes ($254.3) were retired on July 26, 2006 with the net proceeds from the €200.0 Notes and other
available cash.
The €300.0 Notes, €200.0 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.