ManpowerGroup 2007 Annual Report Download - page 56

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53
Manpower 2007 Annual Report
Notes to Consolidated Financial Statements
Revolving Credit Agreement
We have a $625.0 revolving credit agreement with a syndicate of commercial banks. The revolving credit agreement allows for
borrowings in various currencies and up to $150.0 may be used for the issuance of stand-by letters of credit. Outstanding
letters of credit issued under the agreement totaled $3.7 and $4.0 as of December 31, 2007 and 2006, respectively. Beginning
in 2006, the letters of credit outstanding under the revolving credit agreement were substantially reduced as certain letters of
credit have been issued directly by third parties rather than under the revolving credit agreement. Additional borrowings of
$475.4 were available to us under this revolving credit agreement as of December 31, 2007.
In November 2007, the revolving credit agreement was amended (the “amended agreement”) to extend the expiration date to
November 2012 from October 2010, to revise certain covenant calculations, and increase the amount of subsidiary borrowings
allowed under the agreement.
The borrowing margin and facility fee on the amended agreement, as well as the fee paid for the issuance of letters of credit on
the facility, vary based on our public debt ratings and borrowing level. As of December 31, 2007, the interest rate under the
amended agreement was LIBOR plus 0.40% (for U.S. Dollar borrowings, or alternative base rate for foreign currency borrowings),
and the facility and issuance fees were 0.10% and 0.40%, respectively.
The amended agreement requires, among other things, that we comply with a Debt-to-EBITDA ratio of less than 3.25 to 1 and
a fi xed charge ratio of greater than 2.00 to 1. As defi ned in the amended agreement, we had a Debt-to-EBITDA ratio of 0.99 to
1 and a fi xed charge ratio of 4.31 to 1 as of December 31, 2007. Based upon current forecasts, we expect to be in compliance
with these covenants throughout the coming year.
There were no borrowings outstanding under our $125.0 U.S. commercial paper program at December 31, 2007
and 2006.
Interest Rate Swap Agreements
We have entered into various interest rate swap agreements to manage the interest rate and currency risk associated with our
debt instruments. (See Note 13 for further information.)
Fair Value of Debt
The carrying value of Long-Term Debt approximates fair value, except for the Euro-denominated notes which had a fair value,
as determined by quoted market prices, as of December 31, is as follows:
2007 2006
Euro-denominated notes $ 722.5 $ 653.7
Debt Maturities
The maturities of Long-Term Debt payable within each of the four years subsequent to December 31, 2008 are as follows: 2009
– $1.4, 2010 – $146.1, 2011 – $0.1, 2012 – $436.6, and $290.6 thereafter.