Toys 'R' Us files to sell $350 million mandatory convertibles

New York, March 13 - Toys 'R' Us, Inc. filed to sell $350 million mandatory convertibles with the Securities and Exchange Commission Wednesday.

The Paramus, N.J. toy retailer registered seven million of the $50 par equity security units, which will be sold via joint bookrunners Credit Suisse First Boston and Salomon Smith Barney.

Each unit will be made up of a contract to purchase for $50 shares of Toys 'R' Us common stock on May 17, 2005 and a senior note due 2007 with a principal amount of $50. The senior note will initially be held as a component of the unit and be pledged to secure the obligation to purchase stock.

The units will be sold in a minimum bundle of 20 units.

There is a greenshoe of $52.5 million or 1.05 million units.

Concurrently with the equity security unit offering, Toys 'R' Us is selling an unspecified amount of stock. The two sales are not dependent on each other, the company said in the SEC filing.

Proceeds from the two offerings will be used for general corporate purposes and to repay short-term debt.

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