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The Bergen Record reports that the Great Atlantic & Pacific Tea Co. (A&P) says that it "has completed the refinancing of its existing senior debt, and received terms that reduce its interest costs and improve its cash flow.

"The Montvale-based supermarket company, which has 300 stores in six states, said it has arranged with Wells Fargo Capital Finance for a new $300 million senior asset-based credit facility and a $270 million senior secured term loan through an amendment and restatement of its existing credit agreements. An asset-based credit facility is a revolving line of credit that allows retailers to draw funds and cover such costs as inventory purchases and accounts receivable."

The company says that the refinancing will allow it to "lower interest costs and improve cash flow."
KC's View:
That's a good thing, because they certainly can't count on actual customer to help it improve cash flow.

Paul Hertz, the company's president/CEO, is quoted as saying that the new terms put A&P "in a much stronger financial position and allow us to focus on investing in our business by supporting and accelerating our growth strategies."

Growth strategies? Really? I figured that A&P was barely treading water trying to survive and figure who to sell the company to … it never occurred to me that they might actually be trying to grow.