Mattel 2012 Annual Report Download - page 90

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In May 2011, a major credit rating agency changed Mattel’s long-term credit rating from BBB+ to A- and
maintained its short-term credit rating of F-2 and outlook at stable. In April 2011, another major credit rating
agency changed Mattel’s long-term credit rating from BBB to BBB+ and maintained its short-term credit rating
of A-2 and outlook at stable. Additionally, in April 2011, a major credit rating agency changed Mattel’s long-
term credit rating from Baa2 to Baa1 and maintained its short-term credit rating of P-2 and outlook at stable. A
reduction in Mattel’s credit ratings could increase the cost of obtaining financing.
Short-Term Borrowings
As of December 31, 2012 and 2011, Mattel had foreign short-term bank loans outstanding of $9.8 million
and $8.0 million, respectively. As of December 31, 2012 and 2011, Mattel had no borrowings outstanding under
the Credit Facility.
During 2012 and 2011, Mattel had average borrowings of $44.3 million and $15.9 million, respectively,
under its foreign short-term bank loans, and $661.9 million and $599.7 million, respectively, under the Credit
Facility and other short-term borrowings, to help finance its seasonal working capital requirements. The weighted
average interest rate on foreign short-term bank loans during 2012 and 2011 was 7.8% and 11.4%, respectively.
The weighted average interest rate on the Credit Facility and other short-term borrowings during both 2012 and
2011 was 0.4%.
Long-Term Debt
Mattel’s long-term debt consists of the following:
December 31,
2012 2011
(In thousands)
Medium-term notes due November 2013 .................................... $ 50,000 $ 100,000
2008 Senior Notes due March 2013 ........................................ 350,000 350,000
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
1,500,000 1,550,000
Less: current portion ................................................ (400,000) (50,000)
Total long-term debt .................................................... $1,100,000 $1,500,000
Mattel’s Medium-term notes bear interest at fixed rates ranging from 6.50% to 6.61%, with a weighted
average interest rate of 6.53% and 6.89% as of December 31, 2012 and 2011, respectively.
Mattel’s 2008 Senior Notes bear interest at a fixed rate of 5.625%. 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,
2012 and 2011.
During 2011, Mattel repaid the remaining $200.0 million of its 2006 Senior Notes in connection with its
scheduled maturity. During 2012 and 2011, Mattel repaid $50.0 million of its Medium-term notes in connection
with their scheduled maturities.
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