AA PLC Results of Exchange and Tender Offers (4675Q)

TIDMAA.

RNS Number : 4675Q

AA PLC

29 November 2016

AA plc

29 November 2016

Results of Exchange and Tender Offers and pricing of new A5 Fixed Rate Notes

Further to the Exchange and Tender Offers announced on 17 November 2016, the AA is pleased to confirm that its subsidiary, AA Bond Co Limited, has today priced GBP700,000,000 aggregate principal of 2.875% Sub-Class A5 Fixed Rate Notes due 2022/2043 (the "New Notes").

Under the Exchange Offer, the AA has received valid instructions for GBP318,490,000 aggregate principal from eligible holders of the 4.7201% Sub-Class A1 Fixed Rate Notes due 2018/2043 (XS0949169410), of which AA intends to accept GBP300,000,000 aggregate principal of the instructions received, and valid acceptances for GBP195,000,000 aggregate principal from eligible holders of the 3.781% Sub-Class A4 Fixed Rate Notes due 2019/2043 (XS1058749018).

Under the Tender Offer the AA has received valid acceptances for GBP165,238,000 aggregate principal from eligible holders of the 5.500% Class B2 Secured Notes due 2022/2043 (XS1211308231).

This refinancing is in line with the AA's strategy to reduce the cost of its borrowings and will result in annualised interest savings of approximately GBP10 million. In addition, a meaningful portion of the AA's Class A liabilities have been extended from 2018 and 2019 to 2022 and the aggregate principal of its subordinated Class B Note liabilities reduced by GBP165 million.

Completion of the Exchange and Tender Offer and issuance of the New Notes is expected to take place on the 6 December. Detailed information on the Exchange Offer and the Tender Offer are available by way of the Companies Announcement Service of the Irish Stock Exchange where the New Notes will be listed.

Martin Clarke, CFO of the AA, said:

"We are delighted with the take up of these Offers. This refinancing has not only successfully enabled significant annual savings to cash interest costs but also extended the maturities of a substantial proportion of our debt. We will continue to look for opportunities to reduce Group borrowings and associated interest costs in line with our strategy."

Enquiries

Investors

   Jill Sherratt, Head of Investor Relations, AA plc                     [phone] 
   James Curran, Investor Relations Manager, AA plc               [phone] 
   Media (Headland)                                                                   [phone] 

Howard Lee

Francesca Tuckett

Lucy Legh

Notes

Sub-Class A1 Fixed Rate Notes

GBP475 million 4.7201% Sub-Class A1 Fixed Rate notes due 2018/2043 (XS0949169410): GBP300 million were issued on 2 July 2013 and a further GBP175 million were issued on 27 August 2013 and consolidated to form a single

series with the original issue.   GBP475 million in aggregate principal amount are outstanding. 

Sub-Class A4 Fixed Rate Notes

GBP250 million 3.781% Sub-Class A4 Fixed Rate Notes due 2019/2043 (XS1058749018). GBP250 million in aggregate principal amount are outstanding.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 29, 2016 11:37 ET (16:37 GMT)