Toys ‘R’ Us Negotiates $88 Million Mezzanine Deal for Propco II

Toys ‘R’ Us Negotiates $88 Million Mezzanine Deal for Propco II

(Bloomberg)—Toys “R” Us Inc. received a tentative offer for an $88 million financing deal that requires the toy retailer to raise as much as $512 million in the commercial mortgage-backed securities market.

The nonbinding letter of intent covers a five-year mezzanine facility for the Toys “R” Us Property Company II unit, according to a regulatory filing Friday. Negotiations for a definitive agreement are in progress, the company said.

Propco II owns fee and ground leasehold interests in 123 U.S. properties covering 5 million square feet, Toys “R” Us said. For the 12 months ended July 30, the Propco II stores operated by the Toys-Delaware subsidiary generated revenue of $958 million and operating earnings of $113 million, according to the filing.

To contact Bloomberg News staff for this story: Rick Green in New York at [email protected] To contact the editors responsible for this story: Nabila Ahmed at [email protected] Faris Khan, Nick Turner


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