Great Atlantic & Pacific Tea Co Inc: Key Developments
The Great Atlantic & Pacific Tea Company Announces Departure of Eric Claus As President And Chief Executive Officer
October 20, 2009 |
| The Great Atlantic & Pacific Tea Company announced that Eric Claus, President and Chief Executive Officer, will be leaving the Company effective immediately. The Company has commenced a search for a successor and in the interim, Christian Haub, Executive Chairman of the Board, will reassume the Chief Executive Officer responsibilities, a position he previously held from 1998 until 2005. |
The Great Atlantic & Pacific Tea Company Completes $435 Million Capital Raising Effort
August 4, 2009 |
| The Great Atlantic & Pacific Tea Company announced that affiliates of The Yucaipa Companies LLC (Yucaipa) invested $115 million in the Company by purchasing 115,000 shares of the Company's newly created 8.0% Cumulative Convertible Preferred Stock, Series A-Y pursuant to an investment agreement executed among Yucaipa and the Company dated as of July 23, 2009. In addition, partners of Tengelmann Warenhandelsgesellschaft KG (Tengelmann) invested $60 million in the Company by purchasing 60,000 shares of the Company's newly created 8.0% Cumulative Convertible Preferred Stock, Series A-T pursuant to an investment agreement executed among partners of Tengelmann and the Company dated as of July 23, 2009. A total of $175 million was invested in the Company pursuant to a private offering. At the same time, the Company announced the completion of its previously announced offering of $260 million of 11.375% senior secured notes due 2015 (the Notes), successfully accomplishing a fund raising effort resulting in gross proceeds to the Company of $435 million. |
The Great Atlantic & Pacific Tea Company Announces Pricing of $260 Million 11.375% Senior Secured Notes Due 2015
July 30, 2009 |
| The Great Atlantic & Pacific Tea Company 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&'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. 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 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 Great Atlantic & Pacific Tea Company Announces Proposed Offering Of $225 Million Of Senior Secured Notes Due 2015
July 23, 2009 |
| The Great Atlantic & Pacific Tea Company announced that, subject to market and other conditions, it plans to offer $225 million aggregate principal amount of senior secured notes due 2015. The Notes will be second lien secured obligations of A&P, guaranteed by all of the Company`s domestic subsidiaries. The Notes will bear interest at a fixed rate payable semi-annually in cash. A&P intends to use all of the net proceeds of the offering to repay borrowings under its existing credit facility and for general corporate purposes. |
The Great Atlantic & Pacific Tea Company Says Two Companies To Invest $175 Million-Reuters
July 23, 2009 |
| Reuters reported that The Great Atlantic & Pacific Tea Company said two private companies, including Ronald Burkle's Yucaipa Cos, will invest $175 million in the Company, to increase liquidity and strengthen balance sheet. Yucaipa will invest $115 million and Tengelmann Warenhandelsgesellschaft KG will invest $60 million for the purchase of convertible preferred stock, the Company said in a statement. The deal is conditioned upon the issue of $225 million senior secured notes due 2015 that Great Atlantic announced separately. The Company said it intends to use proceeds of the offering to repay debt. |
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