Toys R Us is trying to raise $1.38 billion in new financing to replace bonds that are coming due in the next few years, according to a regulatory filing as reported by Bloomberg. The company is trying to raise $1.025 billion of term loans due in five and a half years and a $350 million bank loan that will mature in five years, which will replace term loans and notes due in 2016 and loans maturing in 2018. It would pay a premium to redeem its existing bonds earlier, and said in the filing that it expects that its interest cost would increase.
A group of bondholders has been pressing for a refinancing to avoid a near term liquidity problem; lobbying for some bondholders to accept a change in terms to permit it (see “Toys R Us Finishes Clearing Inventory”).
The company’s debt is considered well below investment grade, and was downgraded after the company reported losing $1 billion last year (see “Toys R Us Loses $1 Billion”).
Of $1.4 Billion
Posted by ICv2 on September 30, 2014 @ 2:47 am CT
MORE SHOWBIZ
VIZ, Ize Press, Graphix Dominate the Charts
April 19, 2024
New and evergreen titles from VIZ Media, Ize Press, and Graphix take up almost all the slots in the March Top 20s.
Three-Issue Miniseries to Launch in July 2024
April 19, 2024
The three-issue miniseries will launch in July 2024.
MORE GAMES
Pre-Painted Minis for upcoming 'Dungeons & Dragons' Adventure Anthology
April 19, 2024
WizKids will release a new D&D Icons of the Realms set for the upcoming Dungeons & Dragons adventure anthology.
40th Expansion for 'Legendary'
April 19, 2024
This will be the 40th expansion in the Legendary line.