Mattel extends $1.6 billion facility to 2020, amends leverage covenant

By Angela McDaniels

Tacoma, Wash., June 9 – Mattel, Inc. amended and restated its $1.6 billion credit facility on Monday to extend the maturity date to June 9, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The consolidated debt to consolidated EBITDA ratio that the company is required to maintain under the credit facility was changed to no greater than 3.5 to 1.0.

In addition, the definition of consolidated EBITDA was changed to mean, for any period, for the company and its subsidiaries on a consolidated basis, an amount equal to (i) consolidated net income for such period before (A) special items, (B) minority interest and (C) gains on reacquisition of debt, in each case for such period, plus (ii) income taxes accrued for such period plus (iii) interest accrued for such period, excluding capitalized interest and without regard to interest income, plus (iv) depreciation and amortization for such period plus (v) non-cash share-based compensation expense and other non-cash charges for such period.

The interest rate remains Libor plus a margin that ranges from 87.5 basis points to 175 bps.

Bank of America, NA is the administrative agent. Bank of America Merrill Lynch, Wells Fargo Securities, LLC and Citigroup Global Markets Inc. are the joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA and Citibank NA are the co-syndication agents. Mizuho Bank, Ltd., MUFG Union Bank, NA and Royal Bank of Canada are the co-documentation agents.

Mattel makes toys and is based in El Segundo, Calif.

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