AA sets talk for £280 million five-year secured notes at 6¾%-7%

By Paul A. Harris

Portland, Ore., Jan. 19 – The AA set initial price talk in its £280 million offering of five-year class B3 secured notes (B+) at 6¾% to 7%, according to a market source.

The Rule 144A and Regulation S deal is scheduled to run a telephone roadshow through Wednesday.

Global coordinator and lead left bookrunner Barclays will bill and deliver. Credit Suisse and Goldman Sachs are joint global coordinators. Citigroup, JPMorgan and Lloyds are joint bookrunners.

The notes become callable after two years at par plus 50% of the coupon.

The issuing entity will be AA Bond Co. Ltd.

The London-based roadside assistance services provider plans to use the proceeds alongside £261 million of equity to redeem all £541 million class B2 notes outstanding.

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