AA PLC Results of Exchange and Tender Offers (4675Q)
November 29 2016 - 10:37AM
UK Regulatory
TIDMAA.
RNS Number : 4675Q
AA PLC
29 November 2016
AA plc
29 November 2016
Results of Exchange and Tender Offers and pricing of new A5
Fixed Rate Notes
Further to the Exchange and Tender Offers announced on 17
November 2016, the AA is pleased to confirm that its subsidiary, AA
Bond Co Limited, has today priced GBP700,000,000 aggregate
principal of 2.875% Sub-Class A5 Fixed Rate Notes due 2022/2043
(the "New Notes").
Under the Exchange Offer, the AA has received valid instructions
for GBP318,490,000 aggregate principal from eligible holders of the
4.7201% Sub-Class A1 Fixed Rate Notes due 2018/2043 (XS0949169410),
of which AA intends to accept GBP300,000,000 aggregate principal of
the instructions received, and valid acceptances for GBP195,000,000
aggregate principal from eligible holders of the 3.781% Sub-Class
A4 Fixed Rate Notes due 2019/2043 (XS1058749018).
Under the Tender Offer the AA has received valid acceptances for
GBP165,238,000 aggregate principal from eligible holders of the
5.500% Class B2 Secured Notes due 2022/2043 (XS1211308231).
This refinancing is in line with the AA's strategy to reduce the
cost of its borrowings and will result in annualised interest
savings of approximately GBP10 million. In addition, a meaningful
portion of the AA's Class A liabilities have been extended from
2018 and 2019 to 2022 and the aggregate principal of its
subordinated Class B Note liabilities reduced by GBP165
million.
Completion of the Exchange and Tender Offer and issuance of the
New Notes is expected to take place on the 6 December. Detailed
information on the Exchange Offer and the Tender Offer are
available by way of the Companies Announcement Service of the Irish
Stock Exchange where the New Notes will be listed.
Martin Clarke, CFO of the AA, said:
"We are delighted with the take up of these Offers. This
refinancing has not only successfully enabled significant annual
savings to cash interest costs but also extended the maturities of
a substantial proportion of our debt. We will continue to look for
opportunities to reduce Group borrowings and associated interest
costs in line with our strategy."
Enquiries
Investors
Jill Sherratt, Head of Investor Relations, AA plc +442073957301
James Curran, Investor Relations Manager, AA plc +442073954443
Media (Headland) +44 2073675222
Howard Lee
Francesca Tuckett
Lucy Legh
Notes
Sub-Class A1 Fixed Rate Notes
GBP475 million 4.7201% Sub-Class A1 Fixed Rate notes due
2018/2043 (XS0949169410): GBP300 million were issued on 2 July 2013
and a further GBP175 million were issued on 27 August 2013 and
consolidated to form a single
series with the original issue. GBP475 million in aggregate principal amount are outstanding.
Sub-Class A4 Fixed Rate Notes
GBP250 million 3.781% Sub-Class A4 Fixed Rate Notes due
2019/2043 (XS1058749018). GBP250 million in aggregate principal
amount are outstanding.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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