Toys “R” Us, Inc. $2.3 Billion Debtor-in-Possession Financing
9/25/2017

Davis Polk is advising the administrative agent, collateral agent, joint lead arranger and bookrunner in connection with a $2.3 billion ABL/FILO debtor-in-possession financing facility for Toys “R” Us-Delaware, Inc. and certain of its affiliates. On September 18, Toys “R” Us filed for chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. On September 20, the Court entered an interim order approving the DIP financing.

Toys “R” Us, Inc. is a specialty retailer of toys and baby products. The company sells products in the baby, core toy, entertainment, learning and seasonal categories through its retail locations and the Internet. The company operates 1,602 stores and licensed an additional 212 stores. These stores are located in 37 countries and jurisdictions around the world under the Toys “R” Us, Babies “R” Us and FAO Schwarz banners. In addition, the company operates Toys “R” Us Express stores, smaller format stores primarily open on a short-term basis during the holiday season. The company also owns and operates websites, including Toysrus.com, Babiesrus.com, eToys.com, FAO.com and toys.com, as well as other Internet sites.

The Davis Polk insolvency and restructuring team includes partners Marshall S. Huebner, Brian M. Resnick and Eli J. Vonnegut and counsel Veerle Roovers and Christian Fischer. The credit team includes partners Kenneth J. Steinberg and Jeong M. Oh. Counsel Susan D. Kennedy provided real estate advice. Partner Rachel D. Kleinberg provided tax advice. Counsel David A. Zilberberg provided environmental advice. Members of the Davis Polk team are based in the New York and Northern California offices.