ManpowerGroup 2009 Annual Report Download - page 64

Notes To Consolidated Financial Statements
in millions, except share and per share data
62 Manpower 2009 Annual Report Notes to Consolidated Financial Statements
A summary of Long-Term Debt is as follows:
December 31 2009 2008
Euro-denominated notes:
€300 due June 2012 $ 429.0 $ 418.2
€200 due June 2013 285.6 278.4
Revolving credit agreement:
Euro-denominated borrowings –139.7
Other:
Accounts receivable securitization –64.0
Other 1.4 1.6
716.0 901.9
Less – current maturities 0.4 64.6
Long-term debt $ 715.6 $ 837.3
EURO NOTES
Our €300.0 aggregate principal amount 4.50% notes are due June 1, 2012 (the “€300.0 Notes”). 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.
Our €200.0 aggregate principal amount 4.75% notes are due June 14, 2013 (the “€200.0 Notes”). 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 €300.0 Notes and €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 €300.0 Notes or the €200.0 Notes, in whole but not in part, at
our option at any time for a redemption price as defi ned in each agreement. These notes also contain certain customary non-
fi nancial restrictive covenants and events of default.
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 (Loss).
REVOLVING CREDIT AGREEMENT
We have a $400.0 revolving credit agreement with a syndicate of commercial banks that expires in November 2012. The
revolving credit agreement allows for borrowings in various currencies, with up to $150.0 that may be used for the issuance
of stand-by letters of credit. Outstanding letters of credit issued under the agreement totaled $8.6 and $3.8 as of December
31, 2009 and 2008, respectively. Additional borrowings of $391.4 were available to us under this revolving credit agreement
as of December 31, 2009, however total additional borrowings under all facilities would be limited to $334.3 at December 31,
2009 by the fi nancial covenants.
On October 16, 2009, we amended our revolving credit agreement to revise certain terms and fi nancial covenants. The
amended revolving credit agreement (“Amended Revolving Credit Agreement”) reduced the size of the facility from $625.0 to
$400.0. In addition, the Amended Revolving Credit Agreement requires that we comply with maximum Debt-to-EBITDA
ratios, ranging from 3.25 to 1 to 6.00 to 1 beginning with the quarter ended September 30, 2009 through the quarter ending
June 30, 2011, returning to a ratio of 3.25 to 1 for the quarter ending September 30, 2011 and each quarter thereafter. The
Amended Revolving Credit Agreement also requires that we comply with minimum Fixed Charge Coverage ratios, ranging
from 1.25 to 1 to 2.00 to 1 beginning with the quarter ended September 30, 2009 through the quarter ending December 31,
2011, returning to a ratio of 2.00 to 1 for the quarter ending March 31, 2012 and each quarter thereafter.
As defi ned in the Amended Revolving Credit Agreement, we had a Debt-to-EBITDA ratio of 3.64 to 1 (compared to a maximum
allowable ratio of 5.25 to 1) as of December 31, 2009 and a Fixed Charge Coverage ratio of 1.55 to 1 (compared to a
minimum required ratio of 1.25 to 1) as of December 31, 2009.