Toys 'R' Us unit talks $650 million eight-year notes at 8¾% area

By Paul A. Harris

St. Louis, Nov. 9 - Giraffe Properties, LLC talked its $650 million offering of eight-year senior secured notes (Ba2/B+) at the 8¾% area on Monday, according to an informed source.

The deal is expected to price on Tuesday morning.

Bank of America Merrill Lynch, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Wells Fargo Securities are joint bookrunners for the Rule 144A with registration rights offer.

Co-managers are Citigroup Global Markets Inc., Credit Suisse Securities, Barclays Capital Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co.

The notes come with four years of call protection.

Proceeds will be used to repay debt and purchase certain properties from Toys `R' Us Delaware, Inc.

The issuing entity is to be renamed Toys `R' Us Property Co. II, LLC, a subsidiary of Wayne, N.J.-based toy retailer Toys `R' Us.

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