11th Dec 2019 08:40
(Alliance News) - AA PLC on Wednesday said it is planning a buyback or tender offer for its outstanding bonds following continued positive performance in its current financial year.
The car insurance, driving lessons, and breakdown cover provider confirmed that the positive operational momentum reported at the end of September has continued into the second half of its current financial year, which runs until end of January 2020.
AA said it expects to report trading earnings before interest, taxes, depreciation and amortisation and free cash flow for the year in line with market forecasts.
Last year, the company's trading Ebitda was GBP341 million and free cash outflow stood at GBP22 million.
Therefore, it has decided to use some of the cash to buyback or tender for outstanding bonds in the market. AA said it also intends to pursue a range of debt tenders, redemptions and issuances over the coming months.
The company said it will issue an update on February 11 next year and will publish its annual results at the end of March 2020.
AA shares were trading 4.7% higher in London on Wednesday at 45.50 pence a share.
By Evelina Grecenko; [email protected]
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