Financing package of the year: Toys R Us $7.5 billion LBO

The international toy vendor’s private equity buyers got what they wanted from a multi-market financing package

At a glance:
Deal type:
$7.5 billion LBO of Toys R Us by Bain Capital, Kohlberg Kravis Roberts, and Vornado Realty Trust, including $6.1 billion of new financing commitments
Lead arrangers: (US financing) Deutsche Bank, Bank of America; (European financing) Deutsche Bank, Barclays Capital, Royal Bank of Scotland
Date: March 2005

Combined bank and bond deals used to be the preferred way to finance leveraged buyouts. That’s no longer the case. As sponsors went after bigger and more complex buyouts in 2005, they came up with new capital markets solutions to suit the cashflow and assets of individual targets.