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Tops to raise $50 million through bond sale today
Published:February 9, 2010, 6:39 AM
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Updated: August 21, 2010, 4:33 AM
Tops Markets, fresh off its acquisition of 79 Quality Markets stores, is seeking to raise another $50 million today through the sale of new debt.
The sale would pay off a $25 million bridge loan and other short-term borrowings used to finance Tops’ $85 million purchase of 79 stores from the bankrupt Penn Traffic Corp., including 13 Quality markets in Western New York.
The secured notes, which have an interest rate of 10.125 percent, would be due 2015.
Tops raised $275 million in October to refinance debt and pay a $105 million dividend to its private-equity shareholders. Those notes, with an interest rate of 10.13 percent, will come due in 2015 as well.
Morgan Stanley and Bank of America are expected to finalize terms of the deal today.
Williamsville-based Tops was bought from Dutch company Ahold by Morgan Stanley Private Equity Firm for $310 million in 2007. — Samantha Maziarz Christmann
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