By Paul A. Harris
St. Louis, July 30 - Great Atlantic & Pacific Tea Co., Inc. priced an upsized $260 million issue of 11 3/8% six-year senior secured notes (B3/B-) at 97.385 to yield 12% on Thursday, according to an informed source.
The yield was printed 87.5 bps beyond the wide end of the 11% area yield talk. However the issue price came rich to the discount talk of approximately 3 points.
Bank of America Merrill Lynch ran the books for the deal, which was upsized from $225 million.
The notes are secured with a second lien on substantially all of the collateral that is pledged to the asset-based credit facility.
Simultaneous with the closing of the notes offer, the company will issue $175 million of 8% mandatory convertible preferred stock.
Proceeds will be used to repay the existing credit facility and for general corporate purposes.
A&P is a Montvale, N.J.-based supermarket operator.
| Issuer: | Great Atlantic & Pacific Tea Co., Inc.
|
| Face amount: | $260 million (increased from $225 million)
|
| Proceeds: | $253.201 million
|
| Maturity: | Aug. 1, 2015
|
| Security description: | Senior secured notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Coupon: | 11 3/8%
|
| Price: | 97.385
|
| Yield: | 12%
|
| Spread: | 898 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until Aug. 1, 2012, then callable at a premium
|
| Equity clawback: | 35% at 111.375 until Aug. 1, 2012
|
| Trade date: | July 30
|
| Settlement date: | Aug. 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 11% area with about 3 points of OID
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
