We have a $500 million bond that’s due in may 2019. And we are paying 7% interests on the $1 billion bond raised last year. Based on 2017 financials, we paid over $100 million in interests. This year will be higher due to the $1B. There’s a $250 million bond that’s due this year. If you do the math, there’s not enough money. Q1 2019 looks bleak.
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Simple math says we'll need to be in the green well north of $300M just to service the debt payments that are due. So we need to clear at least that just to break even.
it's a race to leave the shipping ship and no one wants to be last! get the f out while you can lol
Many do. Interest rates are well under 8% even with junk bond status. Having a profitable quarter will actually help to keep the rate down even if it was a tiny profit
Oh yes and does every other company have a Moody credit rating of "junk". Please go ahead and tell us what that new interest rate will be and how Mattel will continue to afford it.
It's called refinancing. The May note will be paid with a new note, just like every other company in the Country does
Hey! You took my iPad!? Motherf@cker! I'm going to figure out which one of you posted this.
I loot everyday. work on my own projects on company time, take home supplies, have the model shop make me parts on the sly. I even swiped a managers ipad and keep the find my ipad off. it’s take what you mode at mattel!
Anyone care to venture a guess what might happen once the cash inevitably runs out? Would all new development product development shut down? What about the plants, would production continue? Without cash, how could anything get done? Payroll would stop, payments to vendors would stop, everything would come to grinding halt, order fill rates would drop to 0%. Then creditors and accounts would start lining up hoping to recoup losses and cancel orders. Factories would lock the doors the next day and not let anyone in. Employees would be frantically backing up any useful data to thumb drives and looting their offices taking home office supplies. Who would be the last person left at the office, some security guard I guess. They'd turn off all the lights and lock the door on the way out.
Yep. Plus only about $200 million in cash left. 2019 Q1 or Q2 should be game over.