Toys 'R' Us tenders for 8¾% debentures

New York, Nov. 2 - Toys "R" Us, Inc. said its Toys "R" Us - Delaware, Inc. subsidiary began a tender offer for the $200 million of 8¾% debentures due Sept. 1, 2021 issued by the parent company and Toys Delaware.

Toys Delaware is also soliciting consents to amend the debenture indenture.

The Wayne, N.J., retailer said it is seeking flexibility to optimize its structure and more efficiently finance its capital needs.

Debentures tendered by the consent deadline of 5 p.m. ET on Nov. 15 will receive par, including a $30.00 per $1,000 principal amount consent payment. After the consent deadline the amount on offer is $970 per $1,000 principal amount.

Toys will also pay accrued interest up to but excluding the settlement date.

Holders who tender must deliver consents and vice versa.

The expiration is 11:59 p.m. ET on Nov. 30.

Completion of the offer is subject to the receipt of tenders for a majority of the debentures.

An investment advisor holding $99.29 million of the debentures has agreed to tender and deliver consents.

Banc of America Securities LLC is dealer manager and solicitation agent (contact High Yield Special Products at 888-292-0070, banks and brokers call 704 388-9217). D.F. King & Co., Inc. is information agent for the tender offer and consent solicitation (800 758-5378, banks and brokers call 212 269-5550).

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