NEW YORK (The Deal) -- Certain bondholders of Toys 'R' Us Inc. have formed a group to seek covenant modifications with a goal of making refinancing for the retailer easier, according to a bondholder.
One path toward refinancing -- and a hoped-for turnaround -- would be to pursue a sale-leaseback deal for its domestically owned properties, that person said.
"There's a strong market for sale-leaseback transactions," the investor said, citing American Realty Capital Properties Inc.'s $1.5 billion sale-leaseback deal for 500 Red Lobster restaurants as one recent, sizable example of such a single-tenant deal. That deal closed July 28 as part of Golden Gate Capital's acquisition of Red Lobster from Darden Restaurants Inc.
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