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Prospect News home > News index > List of issuers G > Headlines for Great Atlantic & Pacific Tea Co., Inc. (A&P) > News item |
Great Atlantic & Pacific Tea to launch $800 million DIP loan Tuesday
By Sara Rosenberg
New York, Dec. 13 - The Great Atlantic & Pacific Tea Co. Inc. is scheduled to hold a bank meeting at 2:30 p.m. ET on Tuesday to launch its proposed $800 million 18-month debtor-in-possession financing facility, according to a market source.
JPMorgan is the lead arranger, bookrunner and administrative agent on the deal.
The facility consists of a $350 million term loan and a $450 million revolver.
Pricing on the term loan is expected at Libor plus 750 basis points with a 1.75% Libor floor and an original issue discount of 98, the source said, while pricing on the revolver is expected at Libor plus 300 bps with a 50 bps unused fee.
The term loan has 101 soft call protection.
Financial covenants include requirements related to minimum excess availability, minimum liquidity and minimum cumulative EBITDA.
Proceeds from the DIP loan will be used to refinance the company's pre-petition senior secured credit facility, to provide incremental liquidity, and for working capital and general corporate purposes.
The company announced on Dec. 12 that it filed for Chapter 11 to facilitate a financial and operational restructuring designed to restore its long-term financial health.
Great Atlantic & Pacific Tea is a Montvale, N.J.-based supermarket chain.
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