Draw down of Senior Facility. S&P rating confirmed

23 April 2020

AA PLC ("AA")

Drawdown of Senior Term Facility completed to be used to refinance the Class A3 Notes in July 2020. S&P rating confirmed

Early drawdown of Senior Term Facility

AA announces today, that consistent with its proactive approach to managing its capital structure, its subsidiary AA Senior Co Limited has drawn down in full its £199.7m Senior Term Facility dated 2 July 2018 (the Senior Term Facility). The Senior Term Facility was put in place to enable the repayment, prepayment or purchase of the £200m Class A3 Notes issued by AA Bond Co Limited (the Issuer) and the associated repayment or prepayment of the related intercompany loan.

The proceeds of the utilisation of the Senior Term Facility have, along with funds from AA Senior Co Limited, been used to prepay the Issuer's associated intercompany loan in full and the Issuer has deposited such proceeds into an escrow account on terms agreed with the Class A Note Trustee (the Escrow Arrangements) in order to defease the Class A3 Notes and repay them on their expected maturity date of 31 July 2020.

On 31 July 2020, the funds deposited in the escrow account will be released (pursuant to the terms of the Escrow Arrangements) and used to repay in full the remaining Class A3 Notes.

The Senior Term Facility has a maturity of 31 July 2023 and is subject to an interest rate of LIBOR plus a margin of 1.75 per cent. per annum.

The Group intends to continue to proactively manage its capital structure, including refinancing of the A5 and B2 Notes due in 2022, subject to market conditions.

S&P rating confirmation

As part of this process, S&P Global Ratings has confirmed the credit rating of the Class A Notes at BBB-.

Forward Looking Statements

This release includes forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, terms such as "aim", "anticipate", "assume", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "outlook", "plan", "predict", "project", "should", "will" or "would" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts and include statements regarding AA plc's and the Issuer's intentions, beliefs or current expectations concerning, among other things, AA plc and its subsidiaries' future financial conditions and performance, results of operations and liquidity, strategy, plans, objectives, prospects, growth, goals and targets, future developments in the markets in which AA plc and its subsidiaries participate or are seeking to participate, and anticipated regulatory changes in the industry in which AA plc and its subsidiaries operate. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and are based on numerous assumptions. Given these risks and uncertainties, readers should not rely on forward looking statements as a prediction of actual results. 

ENDS

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AA plc is listed on the London Stock ExchangeRegistered Office: Fanum House, Basing View, Basingstoke, Hampshire, RG21 4EA

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