ManpowerGroup 2014 Annual Report Download - page 76

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Notes to Consolidated Financial Statements
A summary of long-term debt is as follows:
December 31 2014 2013
Euro-denominated notes (€350.0 due June 2018) $ 423.4 $ 480.9
Other 2.4 2.8
425.8 483.7
Less — current maturities 1.9 1.8
Long-term debt $ 423.9 $ 481.9
Euro Notes
We have €350.0 aggregate principal amount 4.50% notes due June 22, 2018 (the “€350.0 Notes”), which were issued at a
price of 99.974% to yield an effective interest rate of 4.505%. Interest on the €350.0 Notes is payable in arrears on June 22
of each year. The €350.0 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 €350.0 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 €350.0 Notes. The €350.0 Notes also contain certain
customary non-financial restrictive covenants and events of default.
When the €350.0 Notes mature, we plan to repay the amount with available cash, borrowings under our $600.0 revolving
credit facility or a new borrowing. The credit terms, including interest rate and facility fees, of any replacement borrowings
will be dependent upon the condition of the credit markets at that time. We currently do not anticipate any problems
accessing the credit markets should we decide to replace the €350.0 Notes.
The €350.0 Notes 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, translation
gains or losses related to these borrowings are included as a component of accumulated other comprehensive (loss)
income. (See the Significant Matters Affecting Results of Operations section of Management’s Discussion & Analysis and
Note 12 to the Consolidated Financial Statements for further information.)
Revolving Credit Agreement
On October 15, 2013, we amended and restated our Five-Year Credit Agreement (“the Amended Agreement”) with a
syndicate of commercial banks. The Amended Agreement allows for borrowing of $600.0 in various currencies, and up to
$150.0 may be used for the issuance of stand-by letters of credit. The Amended Agreement terminates on October 15,
2018 but permits the termination date of the facility to be extended by an additional year twice during the term of the
Amended Agreement. We had no borrowings under this facility as of both December 31, 2014 and 2013. Outstanding
letters of credit issued under the Amended Agreement totaled $1.0 and $0.9 as of December 31, 2014 and 2013,
respectively. Additional borrowings of $599.0 and $599.1 were available to us under the facility as of December 31, 2014
and 2013, respectively.
Under the Amended Agreement, a credit ratings-based pricing grid determines the facility fee and the credit spread that
we add to the applicable interbank borrowing rate on all borrowings. At our current credit rating, the annual facility fee is
17.5 basis points paid on the entire $600.0 facility and the credit spread is 107.5 basis points on any borrowings. A
downgrade from both credit agencies would unfavorably impact our facility fees and result in additional costs ranging from
approximately $0.3 to $0.6 annually.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data