Bloomberg News

Mattel Raises $500 Million With Bond Offering to Refinance Debt

March 04, 2013

Mattel Inc. (MAT:US) raised $500 million with bonds as the world’s biggest toymaker (MAT:US) prepares to refinance outstanding obligations.

The company sold $250 million of 1.7 percent, five-year bonds that yield 95 basis points more than similar-maturity Treasuries and an equal amount of 3.15 percent, 10-year securities with a 130 basis-point spread, according to data compiled by Bloomberg. Proceeds will be used to repay debt, including its $350 million of 5.625 percent securities due this month, the El Segundo, California-based company said today in a regulatory filing.

The offering “appears very attractive to us,” Joscelyn MacKay, an analyst at Chicago-based Morningstar Inc. (MORN:US), wrote today in a report. Fair value may be a spread of about 100 to 110 basis points for the 10-year portion and about 25 to 35 basis points less than that level for the five-year debt, she said.

The new bonds are expected to be rated (MAT:US) Baa1 by Moody’s Investors Service.

To contact the reporter on this story: Charles Mead in New York at

To contact the editor responsible for this story: Alan Goldstein at

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Companies Mentioned

  • MAT
    (Mattel Inc)
    • $39.13 USD
    • -0.12
    • -0.31%
  • MORN
    (Morningstar Inc)
    • $68.62 USD
    • 0.30
    • 0.44%
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