New Issue: Tops sells upsized $75 million add-on to 10 1/8% notes due 2015 at 101.5 to yield 9.71%

By Paul A. Harris

St. Louis, Feb. 9 - Tops Holding Corp. and Tops Markets, LLC priced an upsized $75 million add-on to their 10 1/8% senior secured notes due Oct. 15, 2015 (B3/B/) at 101.5, resulting in a yield of 9.71% on Tuesday, according to an informed source.

The reoffer price came at the cheap end of the 101.5 to 102 price talk.

Morgan Stanley & Co. and Bank of America Merrill Lynch were joint bookrunners for the issue, which was upsized from $50 million.

Proceeds will be used to repay the company's $25 million bridge facility incurred to purchase assets of Penn Traffic Co. and to reduce the balance outstanding under Tops' ABL facility.

Tops is a grocery store chain based in Buffalo, N.Y.

The original $275 million issue priced at 98.354 to yield 10½% on Oct. 1, 2009.

Issuers:	Tops Holding Corp. and Tops Markets, LLC
Face amount:	$75 million
Proceeds:	$76,125,000
Maturity:	Oct. 15, 2015
Securities:	Add-on to 10 1/8% senior secured notes
Bookrunners:	Morgan Stanley & Co., Bank of America Merrill Lynch
Coupon:	10 1/8%
Price:	101.5
Yield:	9.71%
Spread:	741 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2012, then callable at 105.063, 102.531, par on and after Oct. 15, 2014
Trade date:	Feb. 9
Settlement date:	Feb. 12
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	101.5 to 102
Original issue:	$275 million issue priced at 98.354 to yield 10½% on Oct. 1, 2009
Total issue size:	$350 million

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