Toys ‘R’ Us Property plans to redeem all 8½% notes on Nov. 3 at par

By Angela McDaniels

Tacoma, Wash., Oct. 4 – Toys ‘R’ Us, Inc. said Toys ‘R’ Us Property Co. II, LLC issued a conditional notice of redemption for its 8½% senior secured notes due 2017.

The redemption is conditioned on financing, according to an 8-K filing with the Securities and Exchange Commission.

The issuer plans to redeem the notes on Nov. 3 or, if the financing is not completed by then, once the financing is completed but in no case later than Dec. 2.

The redemption price is par plus accrued interest up to but excluding the redemption date.

The issuer plans to satisfy the financing condition with $88 million of mezzanine financing and up to $512 million of commercial mortgage-backed securities financing, which is expected to include an amended master lease with Toys ‘R’ Us-Delaware, Inc. providing for about $67 million of master lease rent per year.

Toys ‘R’ Us is a Wayne, N.J.-based toy retailer.

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