Mattel 2014 Annual Report Download - page 91

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Long-Term Debt
In May 2014, Mattel issued $500.0 million aggregate principal amount of 2.35% senior unsecured notes due
May 6, 2019 (“2014 Senior Notes”). Interest on the 2014 Senior Notes is payable semi-annually on May 6 and
November 6 of each year, beginning November 6, 2014. Mattel may redeem all or part of the 2014 Senior Notes
at any time or from time to time at its option, at a redemption price equal to the greater of (i) 100% of the
principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption
date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security plus 12.5 basis
points.
In March 2013, Mattel issued $250.0 million aggregate principal amount of 1.70% senior unsecured notes
(“1.70% Senior Notes”) due March 15, 2018 and $250.0 million aggregate principal amount of 3.15% senior
unsecured notes (“3.15% Senior Notes”) due March 15, 2023 (collectively, “2013 Senior Notes”). Interest on the
2013 Senior Notes is payable semi-annually on March 15 and September 15 of each year, beginning
September 15, 2013. Mattel may redeem all or part of the 1.70% Senior Notes at any time or from time to time at
its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being
redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and (ii) a “make-whole”
amount based on the yield of a comparable US Treasury security plus 15 basis points. Mattel may redeem all or
part of the 3.15% Senior Notes at any time or from time to time prior to December 15, 2022 (three months prior
to the maturity date of the 3.15% Senior Notes) at its option, at a redemption price equal to the greater of
(i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding,
the redemption date, and (ii) a “make-whole” amount based on the yield of a comparable US Treasury security
plus 20 basis points. Mattel may redeem all or part of the 3.15% Senior Notes at any time or from time to time on
or after December 15, 2022 (three months prior to the maturity date for the 3.15% Senior Notes) at its option, at a
redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid
interest to, but excluding, the redemption date.
Mattel’s long-term debt consists of the following:
December 31,
2014 2013
(In thousands)
2010 Senior Notes due October 2020 and October 2040 ........................ $ 500,000 $ 500,000
2011 Senior Notes due November 2016 and November 2041 .................... 600,000 600,000
2013 Senior Notes due March 2018 and March 2023 ........................... 500,000 500,000
2014 Senior Notes due May 2019 .......................................... 500,000 —
2,100,000 1,600,000
Less: current portion ................................................ — —
Total long-term debt .................................................... $2,100,000 $1,600,000
Mattel’s 2010 Senior Notes bear interest at fixed rates ranging from 4.35% to 6.20%, with a weighted
average interest rate of 5.275% as of December 31, 2014 and 2013. Mattel’s 2011 Senior Notes bear interest at
fixed rates ranging from 2.50% to 5.45%, with a weighted average interest rate of 3.975% as of December 31,
2014 and 2013. Mattel’s 2013 Senior Notes bear interest at fixed rates ranging from 1.70% to 3.15%, with a
weighted average interest rate of 2.425% as of December 31, 2014 and 2013. Mattel’s 2014 Senior Notes bear
interest at a fixed rate of 2.35% as of December 31, 2014.
During 2014, Mattel repaid $44.6 million of long-term borrowings assumed through the acquisition of
MEGA Brands.
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