TOY 12 08/15/21

Toys R Us Inc

Credit, Consumer


Please note, this is an update to TOY 12 08/15/2021 – Long, which was originally presented on Feb 6, 2017 at 88.

Publicly traded companies mentioned herein: Toys R Us Inc (private co w/ public debt)

Highlights

The presenter remains long the Toys R Us (TRU) Taj 12% bonds (TOY 12 08/15/2021), and continues to view the risk/ reward as attractive in the mid-90s (up from ~88 in early Feb 2017). He quickly reviewed how the 2021 12% bond was created through a private exchange, and reiterated his opinion that the structure provides ample protection for investors, despite the many challenges facing the company and its U.S. operations. Following the release of Q1 earnings (June 2017) he sees increasing uncertainty about TRU-Delaware’s future, and a greater likelihood that management has to unlock the value of the international operations via an IPO or deal in 2018 to refinance the nearer-term maturities (either option would benefit the 12% bondholders).

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Idea Discussion

Commentor 1 - 2 weeks ago

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