Tops Holdings is refinancing $85 million of its debt that was scheduled to come due next year.
The refinancing extends the due date on that debt by three years, into 2021, giving the supermarket company more time to operate before running up against the maturity date on its senior notes. Tops is refinancing the debt through an exchange offer to holders of its current senior notes.
The new debt carries an interest rate of 9 percent, which is slightly higher than the 8.75 percent rate on the debt that is being refinanced. But because Tops also will be borrowing slightly less in the refinancing, its overall interest expense is expected to decline by a modest amount, said David Langless, the company's chief financial officer.