A&P seeks to add new-money term loan to asset-backed facility

By Sara Rosenberg

New York, Oct. 22 - Great Atlantic & Pacific Tea Co. is looking to add a new-money term loan to its existing asset-backed facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The term loan is being negotiated with the company's existing banks and several new lenders.

Security is expected to be leasehold assets and other collateral not currently contained in the borrowing base.

The filing said that the complex structure of the term loan has pushed the closing off several weeks.

In addition, the company is continuing to pursue additional financing initiatives, including sale-leaseback transactions and sales of additional non-core and/or non-performing assets, as well as reviewing its store portfolio for additional opportunities.

Great Atlantic & Pacific Tea is a Montvale, N.J.-based operator of supermarkets.

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