Mattel to price $1.2 billion two-part notes offer in Tuesday drive-by

By Paul A. Harris

Portland, Ore., March 9 – Mattel, Inc. plans to price a $1.2 billion two-part offering of senior notes (Ba2/BB/BB) in a Tuesday drive-by, according to market sources.

The deal features $600 million of five-year notes, callable after two years at par plus 50% of the coupon, with initial guidance in the high 3% area, and $600 million of eight-year notes, callable after three years at par plus 50% of the coupon, with initial guidance that has them pricing 37.5 basis points behind the five-year notes.

BofA Securities Inc. is the left bookrunner. Citigroup Global Markets Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

KeyBanc Capital Markets Inc. and M&T Securities are the co-managers.

The Hawthorne, Calif.-based toy manufacturer plans to use proceeds from the Rule 144A and Regulation S deal, plus cash on hand, to redeem $1.225 billion of its outstanding 6¾% senior notes due 2025.

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