Toys 'R' Us obtains tenders for 89.2% of 8¾% debentures

By Jennifer Chiou

New York, Dec. 1 - Toys "R" Us, Inc. said its Toys "R" Us - Delaware, Inc. subsidiary received tenders from holders of $178.327 million or 89.2% of the $200 million of 8¾% debentures due Sept. 1, 2021 issued by the parent company and Toys Delaware.

The expiration was 11:59 p.m. ET on Nov. 30. The offer began on Nov.2.

At the consent deadline, Toys Delaware said it received tenders from holders of $177.073 million or 88.5% of the notes.

The Wayne, N.J., retailer said it is seeking flexibility to optimize its structure and more efficiently finance its capital needs, adding that it executed a supplemental indenture that has become operative.

Debentures tendered by the consent deadline of 5 p.m. ET on Nov. 15 received par, including a $30.00 per $1,000 principal amount consent payment. After the consent deadline the amount on offer is $970.00 per $1,000 principal amount.

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

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

As already announced, an investment advisor holding $99.29 million of the debentures 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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