(Alliance News) - AA PLC on Tuesday said its subsidiary AA Bond Co Ltd has offered to exchange a part of its GBP700.0 million 2.875% sub-class A5 fixed rate notes due 2022/2043.
AA Bond Co said GBP697.3 million notes are outstanding and it intends to exchange not less than GBP250.0 million, but no more than GBP325.0 million of those remaining notes. The A5 notes were offered to be exchanged for the sterling denominated sub-class A8 fixed rate notes due 2027/2050 on an exchange ratio of one A8 note per one A5 note.
The car insurance and driving lessons provider said the offer will commence immediately and will close on Thursday next week.
AA noted that exchange is expected to result in the extension of a "significant" proportion of the maturities related to the sub-class A5 fixed rate notes due January 2022.
"The proposed refinancing is consistent with AA's strategy of extending average debt maturities thereby creating a path to deleveraging," AA said in a statement Tuesday.
AA shares closed 1.3% lower in London on Tuesday at 54.45 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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