By Paul A. Harris
Portland, Ore., Nov. 29 – AA plc’s subsidiary, AA Bond Co. Ltd., priced an upsized £700 million issue of 2 7/8% A5 sub-class fixed-rate notes at a 225 basis points spread to Gilts, according to a prospectus filed on Tuesday.
The deal was upsized from £300 million.
The spread came 30 basis points below the mid-point of the Gilts plus 255 bps spread talk.
The notes, which have an early maturity of Jan. 31, 2022 and a final maturity of Jan. 31, 2043, came at a reoffer price of 99.91 to yield 2.893%.
Credit Suisse Securities (Europe) Ltd., Lloyds Bank plc, Royal Bank of Scotland plc are the stabilization managers.
The issuer, the United Kingdom's largest provider of roadside assistance services, plans to use the proceeds to fund an exchange offer for its 4.7201% sub-class A1 fixed-rate notes due 2018/2043 and its 3.781% sub-class A4 fixed-rate notes due 2019/2043.
| Issuer: | AA Bond Co. Ltd.
|
| Amount: | £700 million, increased from £300 million
|
| Maturity: | Jan. 31, 2022
|
| Final maturity: | Jan. 31, 2043
|
| Securities: | A5 sub-class fixed-rate notes
|
| Managers: | Credit Suisse Securities (Europe) Ltd., Lloyds Bank plc, Royal Bank of Scotland
|
| Coupon: | 2 7/8%
|
| Price: | 99.91
|
| Yield: | 2.893%
|
| Spread: | 225 bps over Gilts
|
| Settlement date: | Dec. 6
|
| Price talk: | Gilts plus 255 bps
|
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