Toy maker Mattel (NASDAQ: MAT) has a lot of debt. That shouldn't come as a surprise to anyone who has owned the stock for a while. Years of stock buybacks, followed by two years of negative free cash flow from its business, have burdened Mattel with a balance sheet carrying $2.8 billion in debt, against less than $200 million in cash.
To help service that debt, Mattel announced last week that it would try to sell $250 million worth of "6.00% senior notes" due in 2027 with which to refinance a bunch of 4.35% senior notes due in 2020. But last night, that plan blew up -- and today, Mattel stock is down 11.4% (as of 10:15 a.m. EDT) as a result.
Image source: Getty Images.
Source Fool.com