Fortress Capital provides $100 million DIP financing to The Great Atlantic & Pacific Tea Company

Client(s) Fortress Capital Corp.

Jones Day represented Fortress Capital Corp., as DIP lender, in connection with a novel $100 million junior lien DIP financing. The DIP financing was instrumental in funding the iconic supermarket operator The Great Atlantic & Pacific Tea Company's $600 million sale of approximately 120 A&P, Foodtown, and Pathmark stores to Stop-n-Shop, Acme and Key Food.

The company's comprehensive sales prices generated an approximately additional $300 million through the sale of smaller subsets of stores and leases to other parties. The DIP loan was primarily a third-lien financing junior to an existing ABL and term loan and senior to two series of existing secured notes. The DIP financing was paid off in full upon the closing of the above-mentioned $600 million sale transactions.