Toys R Us subsidiary closes $725M notes offering

AP News
Posted: Nov 20, 2009 3:15 PM

Toys R Us said Friday that one of its subsidiaries has completed an offering of $725 million in senior secured 8.5 percent notes due in 2017.

Its Toys R Us Property Co. II LLC, formerly known as Giraffe Properties LLC, issued the notes at a price equal to 98.573 percent of their face amount at maturity.

The subsidiary used about $715 of the gross proceeds of the notes and cash on hand to pay back other loans related to a property acquisition.

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The notes are the obligation of the subsidiary only and not guaranteed by Toys R Us itself, which is a private company.

Toys R Us is based in Wayne, N.J.