Toys”R”Us, Inc. (“the Company”) today announced that it has closed on $3.1 billion of financing facilities that will support the Company’s operations during its previously announced financial restructuring process. These financings will support the ongoing liquidity needs of the Company as well as provide additional funds to invest in various initiatives. These investments include the renovation and modernization of Toys”R”Us® stores through improved layouts, updated lighting patterns and other areas to bring them into the next era of retail shopping. The investments will also include updating the Company’s e-commerce sites and infrastructure to better reflect its brand, promote the hottest toys and provide improved delivery capabilities so Toys”R”Us can effectively compete in the online shopping space.
Various lenders contributed to the debtor-in-possession (“DIP”) financing, including a JPMorgan-led bank syndicate and certain of the Company’s existing lenders. On September 20, 2017, the Company received interim approval by the U.S. Bankruptcy Court to access up to $2.2 billion of the DIP financing. The Company intends to seek final Court approval to access the full amount of the DIP financing at a hearing that is scheduled for October 10, 2017.
Toys”R”Us also today announced that, in connection with the initiation of its financial restructuring proceedings, it has cancelled its Q2 2017 Earnings Conference Call scheduled for September 26, 2017. Toys”R”Us intends, as soon as possible, to resume filing relevant materials with the Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q, 10-K and other relevant documents concerning the Company’s financial performance.
As previously announced on September 18, 2017, Toys”R”Us and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA. In addition, the Company’s Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies’ Creditors Arrangement Act (“CCAA”) in the Ontario Superior Court of Justice. The Company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.
Additional information on the Company’s restructuring can be accessed by visiting the Company’s restructuring website at www.toysrusinc.com/restructuring, calling the Company’s Information Hotline, toll-free in the U.S. at 844-794-3476, or sending an email to toysrusinfo@PrimeClerk.com in the U.S. or to firstname.lastname@example.org in Canada. Court filings and other documents related to the court-supervised process in the U.S. are available on a separate website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/toysrus. Information about the CCAA proceedings is available on a separate site maintained by an independent Monitor at www.grantthornton.ca/ToysRUs. The Monitor also has a hotline at 416-777-7202 or 1-855-747-2648.