A&P to roadshow $225 million six-year secured notes starting Friday

By Paul A. Harris

St. Louis, July 23 - Great Atlantic & Pacific Tea Co., Inc. will start a roadshow on Friday for its $225 million offering of six-year senior secured notes (expected ratings B3/B-), according to an informed source.

The deal, which is being led by bookrunner Banc of America Securities LLC/Merrill Lynch & Co., is expected to price late next week.

The Rule 144A with registration rights notes come with three years of call protection and a change of control put at 101.

The notes are secured by a second lien on substantially all of the collateral that is pledged to the asset-based credit facility.

Simultaneously with the closing of the notes offer, the company will issue $175 million of 8% mandatory convertible preferred stock.

Proceeds will be used to repay the existing credit facility and for general corporate purposes.

A&P is a Montvale, N.J.-based supermarket operator.

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