17th Nov 2016 08:43
LONDON (Alliance News) - AA PLC said Thursday it is issuing new fixed rate notes, and launching an exchange and tender offer for previously issued notes.
AA Bond Co Ltd, a subsidiary of the insurer, will issue new sub-class A5 fixed-rate notes due 2022/2043, and launch an exchange offer for previously issued notes.
AA said that eligible holders of its previously issued GBP475 million 4.7201% sub-class A1 fixed rate notes due 2018/2043 are invited to exchange up to GBP200 million aggregate principal of those notes for the new notes.
Additionally, eligible holders of AA's GBP250 million 3.781% sub-class A4 fixed-raten otes due 2019/2043 are invited to exchange any and all of those notes for the new notes.
AA also said it is launching a tender offer for up to GBP200 million of its GBP735 million 5.500% class B2 secured notes due 2022/2043, in exchange for cash.
"This refinancing is in line with our strategic objective, as set out at IPO, to reduce the cost of our debt and improve our credit profile. This, together with the progress made on our transformation, strengthens the AA as we build on our market- leading brand to serve more of our members' needs," said Martin Clarke, chief financial officer of the AA.
AA shares were up 1.5% to 258.30 pence on Thursday.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
AA..L