Commentary & Deal Flow

RAC Bond Co plc (RACLN) GBP345m 144A/Reg S sr class B2 notes expected maturity date 11/04/27 (6y) (final maturity date 2046). NC2 (MWC G+50bp), then at 102.625, 101.3125, 100. Equity claw: 2y 40% at 105.25. NR/B+ (--/stable). Via GS sole physical books(B&D)/BofA/JPM jt glocos/Barc/BNP/DB/HSBC/Lloyds/NatWest/Santander jt books. No reg rights. List ISE. English law. Settles 11/04 (T+10). Reg S ISIN: XS2401582999. IPT: 5.25%-5.50%. Px talk: 5.25%-5.50%.

Priced: 5.25% at 100. +436bp vs UKT 0.25% 12/07/27.

Did investor call at 10am UKT Tuesday. Books closed at 4pm UKT today. UOP: along with EUR5m cash on hand, to fund a GBP345m dividend to shareholders. on 09/06/21 Silver Lake agreed to become a significant shareholder in RAC, closing is expected in late 2021 or early 2022. Sponsors (post the Silver Lake investment): Silver Lake (40%), CVC (23.8%), and GIC (20.9%). Biz: RAC is the UK's leading motoring services organization, providing roadside assistance, motor insurance & telematics, and other driving services. HQ: Walsall, UK.