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AA Bond tenders for some 4.2487% class A3 secured notes due 2020/2043
By Susanna Moon
Chicago, July 2 – AA Bond Co. Ltd. said it is tendering for some of its £500 million of 4.2487% class A3 secured notes due 2020/2043 until 10 a.m. ET on July 9.
The issuer also plans to price new sterling-denominated sub-class A7 fixed-rate notes due 2024/2043, and whether the company will purchase notes tendered in the offer will depend on closing of the new notes, according to a notice.
The minimum amount of notes to be purchased in the offer is expected to be £250 million and the maximum amount £350 million.
Pricing for the tender offer will be set at 6 a.m. ET on July 10 using the 2% U.K. Treasury gilt due July 22, 2020 plus 95 basis points.
Holders also will receive accrued interest to but excluding the settlement date of July 17.
The minimum denomination is £100,000 and in integrals of £1,000 after that.
“The offer is being made as part of the borrower’s liability management program to optimize debt maturities and cost of debt, in the context of current market conditions and upcoming maturities in respect of certain of the borrower’s financing arrangements,” the release said.
Proceeds of the new notes also will be used for to prepay the company’s £250 million senior term facility due 2021.
The lead dealer managers are Barclays (+44 203 134 8515 or eu.lm@barclays.com), Credit Suisse Securities (Europe) Ltd. (+44 207 883 8763 or liability.management@credit-suisse.com) and Lloyds Bank Corporate Markets plc (+44 207 158 1721 or liability.management@lloydsbanking.com).
The dealer managers are BNP Paribas and Citigroup Global Markets Ltd.
The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or theaa@lucid-is.com).
The issuer, based in Basingstoke, is the United Kingdom’s largest provider of roadside assistance service.
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