A&P gets consents to amend 7¾% notes, 9 1/8% notes, sets pricing, to make consent payment to all

New York, Aug. 24 - The Great Atlantic & Pacific Tea Co., Inc. said it has received the necessary consents to amend its 7¾% notes due 2007 and 9 1/8% senior notes due 2011, set pricing in the tender offer and extended the deadline to receive the consent payment.

As of the old consent deadline of 5 p.m. ET on Aug. 23, holders had delivered tenders and consents for $162.287 million or 81.55% of the 7¾% notes and $202.388 million or 93.48% of the 9 1/8% notes.

A&P said it has executed supplemental indentures incorporating the changes.

A&P also announced that it will pay $1,045.66 per $1,000 principal amount, including the $30.00 consent payment, for the 7¾% notes and $1,099.50 per $1,000 principal amount, also including the $30.00 consent payment, for the 9 1/8% notes.

Pricing was fixed at 2 p.m. ET on Aug. 24.

A&P also said that all holders who tender, whether before or after the consent deadline, will receive the consent payment.

The Montvale, N.J., supermarket operator announced the tender for the notes on Aug. 10 and said it was also soliciting consents to eliminate covenants and events of default in the notes' indentures.

For the 7¾% notes, the company determined payment based on the 3¾% Treasury due March 31, 2007 plus 75 basis points.

For the 9 1/8% notes, A&P determined payment based on the 3% Treasury due Dec. 31, 2006 plus 50 bps.

The offers will expire at 11:59 p.m. ET on Sept. 7, unless extended.

The offers are conditioned upon the completed sale of A&P Canada and a majority of the notes being tendered.

Lehman Brothers Inc. is dealer manager and solicitation agent (800 438-3242 or call collect 212 528-7581). The tender agent and information agent is D.F. King & Co., Inc. (800 949-2583 or call collect 212 269-5550).

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