AA PLC Proposed Bond Issue and Refinancing (0491K)
04 July 2017 - 6:41PM
UK Regulatory
TIDMAA.
RNS Number : 0491K
AA PLC
04 July 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014
FOR DISTRIBUTION ONLY OUTSIDE THE UNITED STATES TO PERSONS OTHER
THAN "U.S. PERSONS" (AS DEFINED IN REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED). NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR
RESIDENT IN, ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO
RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT
AA plc and AA Bond Co Limited
4 July 2017
Announcement of AA Bond Co Limited's proposed bond issue and
intention to replace the AA group's senior term and working capital
facilities
Proposed refinancings will reduce interest costs and extend
maturity on improved terms
The AA plc announces today a proposed refinancing package in
line with the Group's strategy to reduce overall borrowings and
associated interest costs. On completion of the proposed
refinancing detailed below, in addition to the extension of the
maturity of debt, further savings in annual interest costs will
allow the company to use more of its free cash flow to pay down
debt in line with its strategy to de-lever over time.
Bond Issue
AA Bond Co Limited, a subsidiary of the AA plc (the "Issuer")
today announces its intention to issue further Class A Notes under
its multicurrency bond programme listed on the Irish Stock
Exchange. Subject to market conditions, the Issuer is expecting to
issue up to GBP250m of fixed-rate Class A Notes with a six year
tenor. The bonds will be senior secured Reg S bearer notes and are
expected to be rated BBB-(sf) by S&P.
The proceeds of the new Notes are expected be used by the AA
group to redeem the Issuer's remaining GBP175m Sub-Class A1 Notes
and GBP55m Sub-Class A4 Notes in full on the next interest payment
date, including any required make-whole payments.
Senior debt repayment, renegotiation and working capital
facility
AA Senior Co Limited (the "Borrower"), a subsidiary of AA plc,
today announces its intention to replace its existing senior term
facility with a new senior term facility. This will result in a
reduction of GBP98m in the Borrower's senior term debt, an
extension of the maturity of that debt to 31 July 2021 and a
reduction in the margin.
The Borrower also announces its intention to replace its
existing working facility with a new working capital facility of
GBP75m (as opposed to the GBP150m currently in place), with a
maturity to 31 July 2021 and, again, a reduced margin.
These refinancings are in line with the AA's strategy to reduce
overall Group borrowings as well as the associated interest cost.
The extension in maturity of debt will mean that the next repayment
of borrowings is due in July 2020, while further savings in annual
interest costs will allow the company to use more of its free cash
flow to pay down debt in line with its strategy to de-lever over
time.
Forward Looking Statements
This release includes forward-looking statements within the
meaning of the securities laws of certain applicable jurisdictions.
These forward-looking statements can be identified by the use of
forward-looking terminology, including, but not limited to, terms
such as "aim", "anticipate", "assume", "believe", "continue",
"could", "estimate", "expect", "forecast", "guidance", "intend",
"may", "outlook", "plan", "predict", "project", "should", "will" or
"would" or, in each case, their negative, or other variations or
comparable terminology. These forward-looking statements include,
but are not limited to, all statements other than statements of
historical facts and include statements regarding AA plc's and the
Issuer's intentions, beliefs or current expectations concerning,
among other things, AA plc and its subsidiaries' future financial
conditions and performance, results of operations and liquidity,
strategy, plans, objectives, prospects, growth, goals and targets,
future developments in the markets in which AA plc and its
subsidiaries participate or are seeking to participate, and
anticipated regulatory changes in the industry in which AA plc and
its subsidiaries operate. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors because they relate to events and depend on circumstances
that may or may not occur in the future. Readers are cautioned that
forward-looking statements are not guarantees of future performance
and are based on numerous assumptions. Given these risks and
uncertainties, readers should not rely on forward looking
statements as a prediction of actual results.
Enquiries
Investors
Jill Sherratt, Head of Investor
Relations, AA plc +442073957301
Media (Headland)
Francesca Tuckett +44 2038054822
This information is provided by RNS
The company news service from the London Stock Exchange
END
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