25th Mar 2015 06:44
LONDON (Alliance News) - AA PLC is set to raise hundreds of millions of pounds in a share issue as part of a refinancing plan designed to reduce the roadside recovery company's debt pile, Sky News reported on Tuesday.
AA is understood to be intending to tap its shareholders for up to GBP200 million in order to replace the balance of existing payment-in-kind notes, an expensive form of financing which is a legacy of its balance sheet structure from years of private equity ownership, Sky said.
The GBP200 million share sale is set to be accompanied by a GBP735 million senior debt refinancing plan, according to Sky's sources, with the move to be announced as early as Wednesday.
http://news.sky.com/story/1451918/aa-races-towards-200m-share-sale
By Sam Unsted; [email protected]; @SamUAtAlliance
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