AA Senior gives results, pricing of capped tender offer for AA Bond notes

By Mary-Katherine Stinson

Lexington, Ky., Aug. 15 – AA Senior Co. Ltd. detailed the results and pricing of its cash tender offer for the £500 million 6.269% fixed-rate sub-class A2 notes due 2025/2043 (ISIN: XS0949169923) issued in two tranches by AA Bond Co. Ltd., up to a maximum acceptance amount, according to a notice.

As of the expiration deadline, a total of £233,716,000 principal of notes were validly tendered, of which £60,619,000 were accepted for purchase at 99.

This results in an aggregate purchase price, excluding interest, of £60,012,810 based on a proration factor of 32.1%. The proration factor is only applicable to tender instructions received that are equal to the purchase price.

The purchase price was determined under a modified Dutch auction process with minimum purchase price being 97.1.

The company will also pay accrued interest.

The offer expired at 11 a.m. ET on Aug. 14.

Settlement is expected to be on Aug. 17.

Following settlement, £439,381,000 in principal amount of the notes will remain outstanding.

The company said the purpose of the offer was to use surplus cash to reduce gross debt, to proactively manage its debt maturities and to offer a liquidity event to noteholders.

The dealer manager is Barclays Bank plc (+44 20 3134 8515; eu.lm@barclays.com).

Kroll Issuer Services Ltd. (+44 207 704 0880; attn.: David Shilson; theaa@is.kroll.com; https://deals.is.kroll.com/theaa) is the tender agent.

The issuer is a special purpose entity for AA Ltd., a London-based roadside assistance services provider.

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