A&P to Sell Metro Stock to Help Finance Pathmark Deal

Montvale, N.J., The Great Atlantic & Pacific Tea Co. Inc. (A&P) said on Monday it intends to sell all its 11.7 million shares of Canada’s Metro Inc. to minimize its indebtedness in A&P’s planned $690 million acquisition of Pathmark Stores Inc.

A&P expects to use the proceeds, together with borrowing under a reduced bridge facility and a portion of its increased $675 million funding from a group of lenders, to finance the Pathmark deal.

A&P said if it cannot sell the Metro shares, it intends to finance the merger with committed financing, including borrowing under the bridge facility or an offering of senior secured notes.

A&P currently expects the Pathmark acquisition to close by the end of December.