(Alliance News) - AA PLC said Monday its subsidiary AA Bond Co Ltd will offer GBP280.0 million of Class B3 secured notes due 2050.
The roadside assistance firm said the proceeds from the note issue will be place into an escrow account.
"Upon the satisfaction of certain conditions including the completion of the acquisition of AA by Basing Bidco Ltd, the proceeds will be released from escrow and used to redeem the outstanding aggregate principal amount of the issuer's existing Class B2 Notes shortly after the acquisition becomes effective," AA added.
The motor association's shareholders have recently voted to approve its takeover by a consortium comprising funds advised by TowerBrook Capital Partners UK LLP and funds managed by Warburg Pincus LLC.
AA back in November agreed to the takeover offer, which values the company at GBP219 million. The deal is expected to complete in the first quarter of 2021.
Shares in AA were 0.1% lower in London on Monday at 34.75 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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