RAC refinancing – update for Bondholders

05 MAR 2024

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

£600,000,000 Fixed Rate Class A-2 Senior Secured Notes due 2046

(ISIN XS1404981141)

and

£250,000,000 Fixed Rate Class A-3 Senior Secured Notes due 2046

(ISIN XS2701595592)

and

£345,000,000 Fixed Rate Class B2 Senior Secured Notes due 2046

(ISIN XS1645523579)

 (together, the “Notes”)

7 March 2024

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 utilised its new £205,000,000 senior term facility due January 2029 in order to refinance the group’s existing £300,000,000 senior term facility due January 2025 (which had been reduced to approximately £140,000,000 principal outstanding, following prior prepayments). The new senior term facility carries a margin of 3 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 £50,000,000 has also been put in place to replace the existing £50,000,000 working capital facility. The new working capital facility will be available until January 2029.

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) £600,000,000 Fixed Rate Class A-2 Senior Secured Notes due 2046; (ii) £250,000,000 Fixed Rate Class A-3 Senior Secured Notes due 2046; and (iii) £345,000,000 Fixed Rate Class B2 Senior Secured Notes due 2046.

The RAC Group has seen strong performance in 2023 with both revenue and EBITDA growth against a challenging economic backdrop demonstrating, once again, the resilience of our subscription-based model, but also our ability to evolve to deliver an ever-broader range of essential services to our loyal and growing membership base. The RAC Group published its full year results for the year ended 31 December 2023 on 28 February 2024.

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. Surplus proceeds from this refinancing will be used to repay other Class A debt  during 2024. Our robust, resilient trading performance and 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:

Jo Baker, Chief Financial Officer                [email protected]

For Media enquiries, please contact: 

RAC Press Office           [email protected]

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