Mattel eyes $1 billion Rule 144A offering of senior notes due 2025

By Devika Patel

Knoxville, Tenn., Dec. 11 – Mattel, Inc. intends to sell $1 billion of fixed-rate senior notes (Ba2/BB-/BB) due 2025 in a Rule 144A private offering, according an 8-K filing with the Securities and Exchange Commission.

The notes are callable at the greater of a make-whole call and a par call until three months prior to maturity and then are callable at par.

Proceeds will be used with cash on hand to repay all of the company’s 1.7% senior notes due 2018 upon or before maturity, to repay all debt related to its commercial paper program and to satisfy all outstanding obligations under the company’s existing revolving credit facility and terminate the commitments.

Additionally, Mattel intends to replace its revolver with a new $1.6 billion senior secured revolver, which will close concurrently with the notes.

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

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