By Paul A. Harris
Portland, Ore., May 8 - Tops Supermarkets priced an upsized $150 million five-year senior contingent cash pay notes (Caa2/CCC+/) at 99 to yield 8.995% on Wednesday, according to an informed source.
The notes pay a cash coupon of 8¾% and a PIK coupon of 9½%.
The cash coupon came at the tight end of the 8¾% to 9% coupon talk. The reoffer price came on top of price talk.
BofA Merrill Lynch and Morgan Stanley & Co. LLC were the joint bookrunners.
The Williamsville, N.Y.-based supermarket retailer plans to use the proceeds to fund a dividend.
| Issuer: | Tops Holdings II Corp. (Tops Supermarkets)
|
| Amount: | $150 million, increased from $125 million
|
| Maturity: | June 15, 2018
|
| Securities: | Senior contingent cash pay notes
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Cash coupon: | 8¾%
|
| PIK coupon: | 9½%
|
| Price: | 99
|
| Cash yield: | 8.995%
|
| Call protection: | Make-whole call until June 15, 2015, then callable at a premium
|
| Trade date: | May 8
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8¾% to 9% cash coupon (75 bps behind for PIK coupon) at 99
|
| Marketing: | Quick to market
|
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