Update on bond purchase programme of up to £20m

AA PLC

(the Company)

Update on bond purchase programme of up to £20m

The following release was issued to the Irish Stock Exchange by the Company earlier today:

FOR DISTRIBUTION ONLY OUTSIDE THE UNITED STATES TO PERSONS OTHER THAN "U.S. PERSONS" (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED). NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT. 

On 21 February 2019 the Company announced that it had authorised a purchase programme of up to £20m cash value through which the Company intended to purchase, through open market purchases or private transactions, 5.500% Class B2 Secured Notes due 2043 issued by AA Bond Co Limited.

The Company confirms that it has purchased 22,896,000 Class B2 Secured Notes for an aggregate cash value of £20m, subject to settlement.

Martin Clarke, Chief Financial Officer, said:

"We are pleased with the successful completion of the bond buyback which achieved its overall target of up to £20m cash amount at competitive market rates. The buyback enables us to generate a healthy return in the form of cash yield and capital profits to maturity. We remain committed to proactive management of our debt and are confident that our strategic plan will help to significantly de-lever the business in line with our longer-term target range of 3 to 4 times net debt to EBITDA."

Enquiries

Peel Hunt

Sales: Patrick King, [email protected] +44 20 3597 8622 

Debt Capital Markets: Stuart Galvin, [email protected] +44 20 7418 8975

Investors

Zeeshan Maqbool +44 20 7395 7303

Media: Finsbury +44 20 7251 3801

Jenny Davey

Philip Walters