A&P completes major capital raising effort

Montvale, N.J. The Great Atlantic and Pacific Tea Co. said Tuesday that affiliates of The Yucaipa Cos. invested $115 million by purchasing 115,000 shares of A&P’s newly created 8.0% Cumulative Convertible Preferred Stock, Series A-Y pursuant to an investment agreement executed between the two on July 23.

In addition, partners of Tengelmann Warenhandelsgesellschaft KG invested $60 million in A&P by purchasing 60,000 shares of A&P’s newly created 8.0% Cumulative Convertible Preferred Stock, Series A-T pursuant to its previously executed agreement.

A total of $175 million was invested in A&P via private offering.

At the same time, A&P announced Tuesday that it completed its previously announced offering of $260 million of 11.375% senior secured notes due 2015, successfully accomplishing a fund-raising effort resulting in $435 million in gross proceeds.