Toys "R" Us gets £112 million senior secured asset-based revolver

By Sara Rosenberg

New York, Oct. 16 - Toys "R" Us Inc. closed on a £112 million three-year senior secured asset-based revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Deutsche Bank and Bank of America acted as the joint lead arrangers and bookrunners on the deal that was completed on Oct. 15, with Deutsche the administrative agent.

Initial pricing on the revolver is Libor plus 400 basis points. Pricing can range form Libor plus 375 bps to 425 bps based on availability.

The revolver contains a springing fixed-charge coverage ratio of 1.10 to 1.00 based on the EBITDA and fixed charges of Toys Europe, Toys Australia and their subsidiaries.

In connection with entering into the revolver, the company repaid the entire outstanding balance of roughly £54 million under its existing £95 million/€145 million multi-currency revolvers, which were terminated.

Toys "R" Us is a Wayne, N.J.-based toy and baby products retailer.

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