Mattel 2008 Annual Report Download - page 87

Long-Term Debt
Mattel’s long-term debt consists of the following:
December 31,
2008 2007
(In thousands)
Medium-term notes due April 2009 to November 2013 ........................... $250,000 $300,000
2006 Senior Notes due June 2009 and June 2011 ................................ 300,000 300,000
2008 Senior Notes due March 2013 ........................................... 350,000 —
900,000 600,000
Less: current portion .................................................. (150,000) (50,000)
Total long-term debt ...................................................... $750,000 $550,000
Mattel’s Medium-term notes bear interest at fixed rates ranging from 6.50% to 7.49%, with a weighted
average interest rate of 7.12% and 7.11% as of December 31, 2008 and 2007, respectively. During 2008, Mattel
repaid $50.0 million of Medium-term notes upon maturity.
In June 2006, Mattel issued $100.0 million of unsecured Floating Rate Senior Notes due June 15, 2009 and
$200.0 million of unsecured 6.125% Senior Notes due June 15, 2011. In June 2006, Mattel entered into two
interest rate swap agreements on the $100.0 million Floating Rate Senior Notes, each in a notional amount of
$50.0 million, for the purpose of hedging the variability of cash flows in the interest payments due to fluctuations
of the LIBOR benchmark interest rate.
In January 2007, Mattel prepaid the remaining $50.0 million of the MAPS term loan facility and, as a result
of the repayment, the MAPS term loan facility terminated. The MAPS term loan facility bore interest at various
rates as selected by Mattel, based on Eurodollar rates or bank reference rates, with a weighted average interest
rate of 5.9% during 2007.
In March 2008, Mattel issued $350.0 million of unsecured 5.625% Senior Notes due March 15, 2013.
Interest on the 2008 Senior Notes is payable semi-annually on March 15 and September 15 of each year,
beginning September 15, 2008. Mattel may redeem all or part of the 2008 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 the redemption date, or (ii) a “make-whole” amount based on
the yield of a comparable US Treasury security plus 50 basis points.
The aggregate amount of long-term debt maturing in the next five years is as follows:
Medium-
Term
Notes
2006
Senior
Notes
2008
Senior
Notes Total
(In thousands)
2009 ................................................. $ 50,000 $100,000 $ — $150,000
2010 ................................................. 50,000 — — 50,000
2011 ................................................. 50,000 200,000 — 250,000
2012 ................................................. 50,000 — — 50,000
2013 ................................................. 50,000 — 350,000 400,000
$250,000 $300,000 $350,000 $900,000
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