Tops Holding refinanced debt in 2015, ends year with $683 million debt

By Lisa Kerner

Charlotte, N.C., March 24 – Tops Holding II Corp. opened five new stores, updated its POS system and refinanced debt in 2015, despite the challenges of low inflation, warm weather and a weak Canadian dollar, according to chairman and chief executive officer Frank Curci.

The company is in an excellent position to grow its business, and Tops will continue to focus on reducing debt in 2016, Curci said during the company’s earnings call on Thursday.

At Jan. 2, Tops had cash and cash equivalents of $35.6 million and total debt, excluding capital leases, of $683.4 million. This compares to $26.3 million and $651.1 million, respectively, at the end of 2014, according to the earnings news release.

Tops had $41 million of unused availability under its revolving credit facility. Outstanding borrowings were $46.7 million as of Jan. 2, down from $52 million as of Dec. 27, 2014.

In June, Tops issued $560 million of 8% senior secured notes due 2022. Proceeds were used to redeem the outstanding $460 million of 8 7/8% notes due in 2017 and to redeem $60 million of the 8¾% notes due in 2018.

Cash provided by operating activities during 2015 was up 43.2% year over year at $54.6 million. It was used to support growth initiatives, including $37.7 million in capital expenditures that were largely related to new store openings, store remodels and maintenance activities.

The Williamsville, N.Y.-based supermarket retailer expects capex to be between $30 million and $35 million in 2016.

Tops Holding II is the indirect parent of Tops Markets, LLC.

© 2015 Prospect News.
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