Earnings Call Excerpt
The Great Atlantic & Pacific Tea Company (GAP)
F1Q09 (Qtr End 6/20/09) Earnings Call
July 23, 2009 10:00 pm ET
Executives
William Moss - Vice President, Treasurer
Christian Wilhelm Erich Haub - Executive Chairman of the Board
Eric Claus - President, Chief Executive Officer
Brenda M. Galgano CPA - Chief Financial Officer, Senior Vice President
Presentation
William Moss
Welcome to the Great Atlantic & Pacific Tea Company conference call. I am Bill Moss, Vice President and Treasurer of A&P. In light of our recent financing announcement, this call has been prerecorded.
On today's call from A&P are Christian Haub, Executive Chairman of the Board, Eric Claus, President and Chief Executive Officer, and Brenda Galgano, Senior Vice President and Chief Financial Officer.
This presentation may contain forward looking statements about the future performance of the company and is based on management's assumptions and beliefs in light of information currently available. The company assumes no obligation to update this information. This forward looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements, including but not limited to, competitive pricing and pricing in the food industry, and particularly in the company's principle markets, the company's relationship with its employees, the terms of future collective bargaining agreements, the costs and other effects of lawsuits and administrative proceedings, the nature and extent of consolidation in the food industry, changes in the financial markets which may affect the company's cost of capital or the ability to access capital, supply or other quality-control problems with the company's vendors, and changes in economic conditions which may affect the buying patterns of the company's customers.
I will now introduce our Executive Chairman, Christian Haub.
Christian Wilhelm Erich Haub
Thank you, Bill. Hello, everyone, and welcome to our prerecorded message today. With me are Brenda and Eric and you'll hear from them shortly.
I'm pleased to share some terrific news with you. Today we announced the execution of two investment agreements, one with each of Yucaipa and Tengelmann whereby they will purchase an aggregate of $175 million of convertible preferred stock in a private placement transaction. Yucaipa will contribute $115 million and Tengelmann will contribute $60 million to this deal.
A&P also announced today the launch of a $225 million high-yield debt offering. The total proceeds of both financings will amount to at least $400 million, representing a significant strengthening of the company's balance sheet.
- To read the full transcript on Seeking Alpha, click here »
