A&P receives final court approval for $800 million DIP financing

By Lisa Kerner

Charlotte, N.C., Jan. 11 - The Great Atlantic &Pacific Tea Co., Inc. (A&P) was granted final approval to obtain post petition financing in the amount of $800 million provided by JPMorgan Chase Bank, NA, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the facility includes a $350 million term loan, which has been funded, and a $450 million revolving credit facility.

Interest on the term loan will be Libor plus 700 basis points, and interest on the revolver will be Libor plus 300 bps.

The debtor-in-possession loan will mature on June 14, 2012.

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.

Great Atlantic & Pacific Tea, a Montvale, N.J.-based supermarket chain, filed for bankruptcy on Dec. 12. Its Chapter 11 case number is 10-25459.

© 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.