By Ronda Fears
Nashville, Tenn., May 22 - Toys R Us Inc. sold $350 million of three-year mandatory convertibles at par of 50 to yield 6.25% with a 22% initial conversion premium, via joint book-running lead managers Credit Suisse First Boston and Salomon Smith Barney.
The deal sold at the rich end of price talk.
Paramus, N.J.-based toy retailer also sold 13 million shares of common stock at $17.65 each, up from 11.5 million planned. The company plans to use proceeds to repay short-term debt and general corporate purposes.
Terms of the new deal are:
Issuer: Toys R Us Inc.
Amount: $350 million
Greenshoe: $52.5 million
Lead Managers: Credit Suisse First Boston and Salomon Smith Barney
Co-Managers: First Union Securities
Maturity Date: June 1, 2005
Dividend: 6.25%
Issue Price: par, $50
Yield-to-maturity: 6.25%
Conversion Premium: 22%
Conversion Price: $17.65/$21.55
Conversion Ratio: 2.8329/2.3202
Call: non-callable
Ratings: Moody's: Baa3
| S&P: BBB
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| Settlement Date: | May 28
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