AA plc
29 November 2016
Results of Exchange and Tender Offers and pricing of new A5 Fixed Rate
Notes
Further to the Exchange and Tender Offers announced on 17 November 2016, the
AA is pleased to confirm that its subsidiary, AA Bond Co Limited, has today priced
£700,000,000 aggregate principal of 2.875% Sub-Class A5 Fixed Rate Notes due
2022/2043 (the “New Notes”).
Under the Exchange Offer, the AA has received valid instructions for £318,490,000
aggregate principal from eligible holders of the 4.7201% Sub-Class A1 Fixed Rate
Notes due 2018/2043 (XS0949169410), of which AA intends to accept
£300,000,000 aggregate principal of the instructions received, and valid
acceptances for £195,000,000 aggregate principal from eligible holders of the
3.781% Sub-Class A4 Fixed Rate Notes due 2019/2043 (XS1058749018).
Under the Tender Offer the AA has received valid acceptances for £165,238,000
aggregate principal from eligible holders of the 5.500% Class B2 Secured Notes
due 2022/2043 (XS1211308231).
This refinancing is in line with the AA’s strategy to reduce the cost of its borrowings
and will result in annualised interest savings of approximately £10 million. In
addition, a meaningful portion of the AA’s Class A liabilities have been extended
from 2018 and 2019 to 2022 and the aggregate principal of its subordinated Class
B Note liabilities reduced by £165 million.
Completion of the Exchange and Tender Offer and issuance of the New Notes is
expected to take place on the 6 December. Detailed information on the Exchange
Offer and the Tender Offer are available by way of the Companies Announcement
Service of the Irish Stock Exchange where the New Notes will be listed.
Martin Clarke, CFO of the AA, said:
“We are delighted with the take up of these Offers. This refinancing has not only
successfully enabled significant annual savings to cash interest costs but also
extended the maturities of a substantial proportion of our debt. We will continue to
look for opportunities to reduce Group borrowings and associated interest costs in
line with our strategy.”
Enquiries
Investors
Jill Sherratt, Head of Investor Relations, AA plc
+442073957301
James Curran, Investor Relations Manager, AA plc
+442073954443
Media (Headland)
Howard Lee
Francesca Tuckett
Lucy Legh
+44 2073675222
Notes
Sub-Class A1 Fixed Rate Notes
£475 million 4.7201% Sub-Class A1 Fixed Rate notes due 2018/2043
(XS0949169410): £300 million were issued on 2 July 2013 and a further £175
million were issued on 27 August 2013 and consolidated to form a single series with
the original issue. £475 million in aggregate principal amount are outstanding.
Sub-Class A4 Fixed Rate Notes
£250 million 3.781% Sub-Class A4 Fixed Rate Notes due 2019/2043
(XS1058749018). £250 million in aggregate principal amount are outstanding.