3rd Feb 2020 12:17
(Alliance News) - AA PLC on Friday said subsidiary AA Bond Co Ltd will issue GBP325.0 million of new notes under an exchange offer.
At the end of January, AA Bond Co offered to exchange part of its GBP700.0 million 2.875% sub-class A5 fixed rate notes due 2022/2043.
At the time, AA Bond Co said GBP697.3 million notes were outstanding and it intended to exchange not less than GBP250.0 million but no more than GBP325.0 million of those remaining notes. The A5 notes were offered to be exchanged for the sterling denominated sub-class A8 fixed rate notes due 2027/2050 on an exchange ratio of one A8 note per one A5 note.
On Friday, the car insurance and driving lessons provider said the offer was oversubscribed, with GBP506.7 million in aggregate amount of the A5 notes received. However, AA Bond Co said it will only exchange notes in the aggregate amount of GBP325.0 million.
Upon the settlement, which is expected to occur on Wednesday, AA said its subsidiary will have GBP372.3 million A5 notes outstanding.
AA shares were trading 2.1% lower in London on Monday at 46.81 pence each.
By Evelina Grecenko; [email protected]
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