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The share sale is to be accompanied by a
refinancing of 735 million pounds of its senior debt facilities
and could be announced as early as Wednesday, Sky News reported.
(http://bit.ly/19N8NyJ)
Proceeds of the sale will be used to replace the balance of an
expensive form of debt, known as payment-in-kind, Sky News
reported.
Payment-in-kind notes are financial instruments that pay
bondholders or preference share holders with interest or
dividends in the form of additional debt instead of cash.
The investors that have been approached for the share sale are
expected to be supportive taking into account the strong
performance of the company, Sky News reported, citing sources.
Francesca Tuckett, a spokesperson for AA declined to comment.
Credit Suisse, Morgan Stanley and Royal Bank of Scotland were
involved in the motoring group's refinancing, which could be
delayed to later this week, Sky News said, citing sources.
Credit Suisse, Morgan Stanley and Royal Bank of Scotland were
not available for comment outside regular working hours.
(Reporting by Zara Mascarenhas in Bengaluru; Editing by David
Gregorio)
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