Toys“R”Us, Inc. has replaced its European Revolving Credit Facility, which was scheduled to expire in July 2010, with a new International Asset Backed Loan Facility that will continue until October 15, 2012.
The new facility will provide £112m of borrowing capacity to the company’s U.K., European and Australian operations for general corporate purposes and the issuance of letters of credit.
Toys“R”Us (UK), LTD., Toys“R”Us Europe, LLC., and Toys“R”Us (Australia) PTY LTD., are wholly-owned subsidiaries of Toys“R”Us, Inc., which operates the Toys“R”Us and Babies“R”Us stores in the United Kingdom, Europe and Australia.
The borrowing rates in the new facility vary with usage and are approximately LIBOR plus 4.0%. Deutsche Bank and Banc of America Securities LLC were joint lead arrangers and joint bookrunning managers for the transaction. Other major lending institutions participating in the agreement were Citibank and Goldman Sachs.
As stated by Clay Creasey, Chief Financial Officer, Toys“R”Us., this borrowing facility will provide the company with additional liquidity to fund its international seasonal working capital needs.
“This is our third major refinancing this year, and it is yet another vote of confidence from our bank group. These funds, combined with the existing strong liquidity position of the parent company, will help ensure the continued growth of our international operations”.