Fitch gives Toys 'R' Us notes B+

Fitch Ratings said it rates Toys 'R' Us Property Co. I, LLC's new $950 million of senior unsecured notes B+/RR2.

The agency added that these notes benefit from a negative pledge on 359 properties held in a bankruptcy-remote entity with a Master Lease covering all the properties, which requires Toys Delaware to pay all costs and expenses related to the ownership, operation, leasing and maintenance of the properties.

In addition, the notes will be guaranteed by the property company's subsidiaries, the agency said.

Proceeds from the offering, proceeds from the sale of 25 properties, cash contribution from Toys 'R' Us, release of restricted cash and cash on hand will be used to repay the existing $1.3 billion structured credit facility, Fitch added.

Fitch has also affirmed the following ratings:

• Toys 'R' Us, Inc.'s issuer default rating at B-;

• Toys 'R' Us, Delaware's issuer default rating at B- and secured revolver at B/RR3;

• Toys 'R' Us Property Co. I's issuer default rating at B-; and

• Toys 'R' Us (UK) Ltd.'s issuer default rating at B- and multicurrency security revolver at B/RR3.

In addition, Fitch said it has revised its ratings on the following to reflect the new issue rating definitions as of March 2009:

• Toys 'R' Us, Inc.'s senior unsecured notes to C/RR6 from CCC-/RR6; and

• Toys 'R' Us, Delaware's secured term loan to CC/RR6 from CCC+/RR5; unsecured term loan to CC/RR6 from CCC/RR6; and senior unsecured notes to CC/RR6 from CCC/RR6.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.