Refinancing of the RAC Group's senior term and working capital facilities and trading update

03 FEB 2020

RAC BOND CO PLC

(a public limited company incorporated in England and Wales with registered no. 10084638)

 (the “Issuer”)

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY U.S. PERSON (AS DEFINED BELOW) OR IN OR INTO THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) (together, the United States) OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

NOTICE
to the holders of
£300,000,000 Fixed Rate Class A Senior Secured Notes due 2046
(ISIN XS1404980846)
and
£600,000,000 Fixed Rate Class A Senior Secured Notes due 2046
(ISIN XS1404981141)
and
£275,000,000 Fixed Rate Class B Senior Secured Notes due 2046
(ISIN XS1645523579) (together, the “Notes”)

Refinancing of the RAC Group's senior term and working capital facilities and trading update

The Issuer announces that its affiliate RAC Limited has successfully refinanced the RAC Group’s senior term and working capital facilities.

RAC Limited has entered into a £300m senior term facility (together with an additional £80m accordion facility) due January 2025 in order to refinance the group’s existing £280m senior term facility due May 2021. The new senior term facility carries interest at LIBOR + 2.50 per cent. and interest rate risk has been appropriately hedged through an interest rate swap in accordance with the hedging policy to which the RAC Group is subject.

A new working capital facility of £50m, has also been put in place to replace the existing £50m working capital facility. The new working capital facility will be available until January 2025.

The Issuer informed Standard & Poor’s Global Ratings (“S&P”) about this refinancing and S&P has confirmed that this refinancing will not, in and of itself, result in a downgrade, withdrawal or qualification of the ratings assigned to the (i) £300,000,000 Fixed Rate Class A Senior Secured Notes due 2046; (ii) £600,000,000 Fixed Rate Class A Senior Secured Notes due 2046; and (iii) £275,000,000 Fixed Rate Class B Senior Secured Notes due 2046.

The RAC Group has seen continued positive performance in the second half of 2019. The RAC Group will publish its full year results for the year ended 31 December 2019 on 26 February 2020.
 
Jo Baker, CFO, commented, “I am pleased that we have received such strong support from our relationship banks, enabling us to extend the maturity profile of our debt on attractive terms. The increase in the size of the facility, together with our strong and sustainable cash flows, supports our overall capital structure. Our positive momentum continues and we look to the future with confidence in our sustained growth trajectory.” 

“RAC Group” means RAC Bidco Limited and each of its subsidiaries (other than the Issuer).

This announcement has been issued through the Companies Announcement Service of the Irish Stock Exchange

For Investor enquiries, please contact:
 
Bruce Claassen, Group Finance Director            [email protected]

For Media enquiries, please contact:
 
Rod Dennis, Press Officer           [email protected]

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