Commentary & Deal Flow

AA Bond Co Limited (The AA) (AABOND) GBP280m Reg S/144A class B3 sr sec notes due 2026 (5y). NC2 (50%,25%,par). NR/B+. Via Barc (B&D)/CS/GS jt glocos/Citi/JPM/Lloyds jt books. No reg rights. List Dublin. English law. IPT: 6.75%-7.00%. Price talk 6.75% area.

Final pricing: 6.50% (the number).

Telephonic roadshow 01/18-20 (investor call at 1pm UKT 01/18). Books close at 9:30am UKT today. Pricing today. UOP: as part of the acquisition of AA plc by TowerBrook and Warburg Pincus for 35p per share (GBP215m equity value), to redeem GBP541m of its GBP570m 5.50% 2nd lien class B notes due 07/31/22 at 100. The equity sponsors will contribute GBP378m in equity (GBP261m of which will be used to refinance the class B notes). The bond end equity proceeds portion will be held in escrow pending completion of the acquisition. Biz: leading roadside assistance provider in the UK. HQ: Basingstoke, UK. (Acquisition announced 11/25/20).