Montvale, N.J., 2014-9-19— /EPR Retail News/ — The Great Atlantic & Pacific Tea Company, Inc. (A&P) today announced that it completed the refinancing of its existing senior debt on terms favorable to the Company. A&P successfully partnered with Wells Fargo Capital Finance to arrange the new $300 million senior secured ABL facility and $270 million senior secured term loan through an amendment and restatement of its existing credit agreements.
A&P’s enhanced capital structure is the latest indication of the Company’s improved business fundamentals, and follows the upgraded ratings outlooks issued by each of Moody’s and Standard & Poor’s earlier this year. The new covenant-free debt arrangement provides for a significant reduction in interest expense and enhanced liquidity, and reflects the debt market’s confidence in A&P’s ongoing progress and prospects for future growth.
Paul Hertz, President and CEO, said, “We are extremely pleased to have completed the refinancing of our credit facilities on attractive terms that reduce our borrowing costs and provide greater operational and financial flexibility. Our new senior debt puts the Company in a much stronger financial position and allows us to focus on investing in our business by supporting and accelerating our growth strategies.”
Founded in 1859, A&P is one of the nation’s first supermarket chains. The company operates 300 stores in six states under the following banners: A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum’s.
Dan Gagnier/Brian Shiver
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