New Issue: Toys 'R' Us prices $350 million six-year notes at par to yield 7 3/8%

By Paul A. Harris

St. Louis, Aug. 16 - Toys 'R' Us-Delaware, Inc. priced a $350 million issue of six-year senior secured notes (B1/BB-/) at par to yield 7 3/8% on Monday, according to an informed source.

The yield printed at the tight end of the 7 3/8% to 7½% price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market Rule 144A for life issue.

Co-managers were Credit Suisse Securities, Goldman Sachs & Co., Wells Fargo Securities, HSBC and US Bancorp.

The Wayne, N.J.-based toy retailer will use the proceeds to repay bank debt.

Issuer:	Toys 'R' Us-Delaware, Inc.
Amount:	$350 million
Maturity:	Sept. 1, 2016
Securities:	Senior secured notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
Co-managers:	Credit Suisse Securities, Goldman Sachs & Co., Wells Fargo Securities, HSBC, US Bancorp
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	567 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Sept. 1, 2013, then callable at 103.688, 101.844, par on and after Sept. 1, 2015
Equity clawback:	35% at 107.375 until Sept. 1, 2013
Change-of-control put:	101%
Trade date:	Aug. 16
Settlement date:	Aug. 24
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A for life
Price talk:	7 3/8% to 7½%
Marketing:	Quick-to-market

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