The Great Atlantic & Pacific Tea Company, Inc. Announces Pricing of $260 Million 11.375% Senior Secured Notes due 2015
July 30 2009 - 4:03PM
Business Wire
The Great Atlantic & Pacific Tea Company, Inc. (A&P
or the Company) (NYSE:GAP) today announced the pricing for the
offering of its $260 million in aggregate principal amount of
11.375 % senior secured notes due 2015 (the “Notes”). The Notes
will be second lien secured obligations of A&P, guaranteed by
all of A&P’s domestic subsidiaries. The Notes will be sold at a
price equal to 97.385% of their face value, with an effective yield
of 12%, and will bear interest at a fixed rate payable
semi-annually in cash. The offering is expected to close on August
4, 2009, subject to the satisfaction or waiver of customary closing
conditions. In addition, the offering is contingent upon the
consummation of the Company’s issuance of $175 million of 8.0%
convertible preferred stock to affiliates of The Yucaipa Companies,
LLC and to affiliates of the Company’s largest shareholder
Tengelmann Warenhandelsgesellschaft KG.
The Company intends to use the net proceeds of the Notes
offering to repay a portion of outstanding borrowings under its
existing credit facility and for general corporate purposes.
The Notes are being offered only to qualified institutional
buyers in reliance on Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”), and outside the United States,
only to non-U.S. investors pursuant to Regulation S. The Notes have
not been registered under the Securities Act or the securities laws
of any other jurisdiction and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. Any offers of the Notes
will be made only by means of a private offering memorandum.
Forward-looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act of 1934, as
amended. All statements included herein, other than statements of
historical fact, may constitute forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. These
forward-looking statements are subject to uncertainties and other
factors that could cause actual results to differ materially from
such statements. These uncertainties and factors are disclosed in
the risk factors contained in the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 20, 2009, filed with the
Securities and Exchange Commission on July 23, 2009. All
forward-looking statements are expressly qualified in their
entirety by such factors.
About The Great Atlantic & Pacific Tea Company,
Inc.
Founded in 1859, A&P is one of the nation’s first
supermarket chains. The Company operates 435 stores in 8 states and
the District of Columbia under the following trade names: A&P,
Waldbaum’s, Pathmark, Pathmark Sav-a-Center, Best Cellars, The Food
Emporium, Super Foodmart, Super Fresh and Food Basics.
Management undertakes no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Persons are advised, however, to
consult any further disclosures management makes on related
subjects in its reports filed with the SEC and in its press
releases.
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