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
Plus: Mothra Gets First Solo Series
November 22, 2024
IDW Publishing will launch the first-ever Mothra series in 2025.
First Graphic Novel Coming in Mid-2025
November 22, 2024
The first graphic novel adaptation is slated for release in mid-2025.
MORE GAMES
'Death Korps of Krieg,' Also, New 'Astra Militarium Codex'
November 22, 2024
Games Workshop unveiled Death Korps of Krieg boxed set, for Warhammer 40,000.
New Premium Figure
November 22, 2024
WizKids will release Adult Red Dragon Tyrant, a new premium figure for D&D Icons of the Realms, into retail.