Goldman Leads Loans to Replace Toys ‘R’ Us Debt
Bloomberg reported Goldman Sachs Group is leading Toys “R” Us loans that will replace existing debt, with commitments from lenders due by Oct. 7, according to Bloomberg data.
According to Bloomberg the extra cash interest the company will pay to refinance obligations and push back its first major maturity to 2017 may total about $40 million, increasing annual debt-service costs to about $400 million, according to Charles Pinson-Rose, an analyst with Standard & Poor’s.
Bloomberg added the refinancing comes as Toys “R” Us heads into the holiday season, a crucial time for a retailer that saw a revenue decline of 8.7% in the similar period last year.
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