Watch Live


Mattel Raises $500 Million With Bond Offering to Refinance Debt

Mattel Inc. (MAT) raised $500 million with bonds as the world’s biggest toymaker 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), 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 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.