Toys R Us has reached an agreement with noteholders to refinance approximately 50 per cent of its $850m debt.
The toy retail giant has struck a deal with the noteholders to refinance up to 89 per cent of these existing notes via an exchange offer that will see the trade of its existing debt for newly issued debt maturing in five years.
Meanwhile, a third party has agreed to purchase up to $50m of new debt subject to the successful completion of the exchange.
The debt is scheduled to mature in 2017 and 2018.
Chariman and chief executive officer at the company, Dave Brandon, said: “We are pleased to have reached an agreement to refinance our debt. We believe this represents a significant step forward in our efforts to create a strong financial foundation and pursue long-term growth.
“I also want to extend my thanks to the individuals and teams who have worked tirelessly over the last several weeks on this deal.”