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Mattel sees return of investor confidence with $600m bond sale

Mattel has sold $600 million in bonds to refinance the toymaker’s existing debt, following a halt to transactions earlier this year when an anonymous complaint drew attention towards the firm’s discrepancies in its accounting and internal controls.

Mattel completed an internal investigation in late October and pledged to strengthen its financial reporting controls and restate its 2017 earnings. The investigation found accounting errors in Mattel’s reports for the last two quarters of 2017.

The company has since restated its quarterly results, while the investigation determined that the independence of Mattel’s outside auditor had not been compromised.

Resultantly, the toymaker has seen regained investor confidence, making its return to the debt market with the sale of $600 million of bonds. The sale is somewhat larger than the transaction that was halted earlier in the year by the whistleblower’s letter.

With its latest debt offering, Mattel sold $600 million of notes due in 2027 to refinance existing bonds maturing in 2020 and 2021, according to some familiar with the matter.

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