A&P tenders for any and all 7¾% notes due 2007, 9 1/8% notes due 2011

By Jennifer Chiou

New York, Aug. 10 - The Great Atlantic & Pacific Tea Co., Inc. said it began tender offers for any and all of its outstanding 7¾% notes due 2007 and 9 1/8% senior notes due 2011.

The Montvale, N.J. supermarket operator is also soliciting consents to eliminate covenants and events of default in the notes' indentures.

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

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

Pricing will be determined at 2 p.m. ET on Aug. 24.

Based on Aug. 5's reference rates, the total consideration would be $1,044.33 for the 7¾% notes and $1,098.65 for the 9 1/8% notes for each $1,000 principal amount.

Those who tender their notes before 5 p.m. ET on Aug. 23, the consent deadline, will receive the $30.00 per $1,000 principal amount consent payment.

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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