Bank of America, Deutsche Bank, Citigroup and Credit Suisse are leading a $1 billion facility for Toys "R" Us, according to a filing with the Securities and Exchange Commission. The credit is expected to consist of a six-year, $800 million term loan and a two-year, $200 million asset-sale facility. Pricing had not yet been determined. The company will back the deal with its subsidiaries including Babies "R" Us.
Deutsche Bank led a $1.5 billion asset-based deal in October for the company, that was designed to partially take out the $1.9 billion bridge loan put into place for the $6.6 billion leveraged buyout of the company by Bain Capital, Kohlberg Kravis Roberts & Co. and Vornado Realty Trust. The three-year deal was priced at LIBOR plus 2 3/4% at launch (CIN, 10/28).
Clay Creasey, executive v.p. and cfo, and a spokeswoman declined comment. A spokesman from KKR and a spokeswoman for Vornado declined comment. A spokesman for Bain could not be reached.