According to documents filed with the SEC, Toys “R” Us entered into an amendment in order satisfy certain requirements set forth in the indenture relating to its 11% Senior Secured ABL D.I.P. Notes issued by TRU Taj LLC and TRU Taj Finance (collectively, the “Issuers”) and the terms of the foreign guarantors agreement relating to the Issuers’ 12% Senior Secured Notes due 2021.
The amendment permits, among other things, certain obligors under the existing facility agreement to provide guarantees and grant certain liens to secure the obligations of the Issuers and guarantors under each of the indentures. In connection with the amendment, the Company reduced the lenders’ commitments under the existing facility agreement to an aggregate of £115,000,000 to better align such amount with its current liquidity requirements. In addition, the amendment modifies the maturity date of the existing facility agreement to be substantially the same as the maturity date of the D.I.P. notes issued under the D.I.P. notes indenture.
The amended maturity date of the existing facility agreement is the earlier of (x) the date on which the D.I.P. notes mature and (y) January 18, 2019. As part of the amendment, the applicable margin with respect to loans under the existing facility agreement was increased to 3.50% and a financial covenant identical to the one included in the D.I.P. notes indenture was added, which requires the obligors and their subsidiaries maintain a minimum cumulative consolidated EBITDA not less than a certain percentage of forecasted consolidated EBITDA. The amendment also (i) simplifies the borrower’s minimum liquidity requirements under the facility by including a covenant requiring that the borrowers thereunder maintain excess availability of at least £10,000,000.
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