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Debt Loadingcritical2005
Toys "R" Us
Retail & Consumer · owned by Bain Capital

Toys "R" Us loaded with $5.2 billion in LBO debt

Of the $6.6B acquisition price, only $1.3B was equity from the PE consortium. The remaining $5.2B was loaded as debt onto the company itself, requiring $400M/year in interest payments.

Annual debt service
Before
$0
After
$400M/year
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Toys "R" Us loaded with $5.2 billion in LBO debt | DeathByPE