Mattel Boosts Line of Credit to $1.6 Billion From $1.4 Billion
Mattel Inc. (MAT), the world’s largest toymaker, increased a revolving line of credit, while cutting the interest rate and extending its maturity.
The maker of Barbie and Hot Wheels brands increased commitments under the loan to $1.6 billion from $1.4 billion, the El Segundo, California-based company said today in a regulatory filing. Mattel may boost the loan to $1.85 billion using a so-called accordion feature under terms of the credit pact.
Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. arranged the loan, which will pay interest ranging from 0.875 percentage point to 1.75 percentage points more than the London interbank offered rate, depending upon its debt rating, according to the company. Under the credit pact dated March 2011, the loan was paying interest at 1.25 percentage points to 2.5 percentage points more than Libor.
The loan, which was due in March 2015, will now expire in March 2018, according to the company.
In a revolving line of credit, money can be borrowed again once it is repaid.
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