A&P wraps $175 million funding; Ten Network's deal oversubscribed; Comaplex upsizes placement

By Stephanie N. Rotondo

Portland, Ore., Aug. 5 - Several triple digit deals came to market Wednesday, with Great Atlantic & Pacific Tea Co. leading the pack.

A&P announced it completed a $175 million placement of preferreds to two investors. The financing was part of a larger plan to raise $435 million which also included a high-yield bond offering.

Ten Network Holdings Ltd. also announced a large deal. The company intends to raise A$138 million through an oversubscribed stock sale.

Meanwhile, Comaplex Minerals Corp. said it lifted its private placement of equity. The increase was attributed to strong demand.

Mithril Resources Ltd. said it would issue ordinary shares, along with options, in its effort to raise A$6 million. Proceeds will go toward exploration.

PuriCore plc said it would raise £2 million for its acquisition of Labcaire Systems Ltd. That is about half the cost of the total purchase price.

A&P completes $175 million deal

Great Atlantic & Pacific Tea brought in $175 million through a private placement of preferreds, according to a regulatory filing and subsequent press release.

The company sold $60 million of 8% series A-T cumulative convertible preferred shares to partners of Tengelmann Warenhandelsgesellschaft KG. The Yucaipa Cos. LLC purchased $115 million of 8% series A-Y cumulative preferred shares.

Each preferred was sold at $1,000.00 per share. A total of 60,000 A-T preferreds were issued, along with 115,000 A-Y preferreds.

The preferred shares are convertible into common stock at $5.00 per share.

The financings were part of a larger plan to raise $435 million. A&P also completed the $260 million sale of its 11 3/8% senior secured notes due 2015.

"The injection of $175 million of equity capital, combined with raising $260 million through the issuance of the notes, significantly strengthens A&P's balance sheet and provides additional liquidity for the company to pay down a portion of its senior credit facility and compete in the dynamic food retail industry," the company said in the release.

Tengelmann remains the top shareholder of A&P, with an ownership interest of 38.6%. Yucaipa's interest increased to 27.6%.

"Working together with Yucaipa is an exciting opportunity to collaborate with one of the most successful investors in the supermarket industry," remarked Christian Haub, executive chairman of A&P and co-chief executive of Tengelmann, in the press release. "I have enjoyed a productive relationship with Ron Burkle for many years and I believe that together we will drive significant performance improvement in the business and realize the tremendous potential and strategic value of A&P."

A&P's stock (NYSE: GAP) dipped 2 cents, or 0.35%, to $5.65. Market capitalization is $318 million.

A&P is a Montvale, N.J.-based supermarket chain, managing A&P, Pathmark, Waldbaum's, the Food Emporium and other supermarkets.

Ten Network deal oversubscribed

Ten Network Holdings plans to raise A$138 million via an oversubscribed private placement of ordinary shares.

The company will issue 120 million of the shares at A$1.15 per share.

"We are very pleased with the support investors have shown in the placement," stated Nick Falloon, executive chairman, in a press release. "The capital raised will be used to pay down debt and enhance balance sheet flexibility."

Settlement is expected by Aug. 10.

Ten Network's stock (ASX: TEN) ended at A$1.33.

Ten Network Holdings is a Sydney, Australia-based operator of commercial television licenses in Sydney, Melbourne, Brisbane, Adelaide and Perth.

Comaplex lifts stock placement

Comaplex Minerals said it increased a previously announced private placement of equity to $23.5 million from C$20.02 million.

Under the terms of the deal announced Aug. 4, the company had included a C$1.98 million greenshoe.

Comapex now intends to sell 5.53 million common shares at C$4.25 per share.

The upsizing was due to "strong investor demand," according to a press release.

Proceeds will be sued for general corporate purposes. Settlement is expected by Aug. 25.

Calls made to the company seeking comment went unreturned Wednesday.

Comaplex's equity (TSX: CMF) gained a nickel, or 1.19%, to C$4.25. Market capitalization is C$224 million.

Comaplex Minerals is a Calgary, Alta.-based precious metals, base metals and diamond exploration and development company.

Mithril sells equity, options

Goodwood, Australia-based Mithril Resources arranged an A$6 million placement of equity and attaching options, according to a press release.

The mining company will sell 50 ordinary shares at A$0.12 per share. In addition, 1-for-2 attaching options will also be included, at a strike price of A$0.12 for two years.

The deal will come in two tranches, with the first bringing in A$1.21 million, or 10.5 million shares. The second tranche will include 39.95 million shares and 25 million options for proceeds of A$4.79 million.

The placement is oversubscribed, the company said.

"The company feels that [the oversubscription] underlines the strength of its project portfolio and in particular the potential of the Huckitta Nickel Project which continues to generate on-going positive results," the release stated.

Mithril's shares (ASX: MTH) closed at A$0.135.

PuriCore raises funds for merger

PuriCore, a Malvern, Pa., and Stafford, United Kingdom-based company, took in £2 million from a brokered private placement of equity.

The company sold approximately 10.81 million shares at 18.5 per share.

The financing is in conjunction with PuriCore's acquisition of Labcaire Systems Ltd. PuriCore has purchased all of Labcaire's outstanding equity for $3.6 million in cash and expects to invest another $1 million, to be payable in equal installments over the next four years.

PuriCore hopes the merger will help the company further enter the endoscopic market place.

"This synergistic combination of our endoscopy business with Labcaire heightens PuriCore's position as a leader in the U.K. endoscopy market and transforms two strong product lines into a world-class portfolio," said Greg Bosch, chief executive of PuriCore, in a press release.

PuriCore's stock (LSX: PURI) finished the session at 18.25p. Market capitalization is £41.7 million.

PuriCore markets a portfolio of branded systems that produce hypochlorous acid solutions on-site at a customer's location from water, electricity and common salt.

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