AA removes sub debt

The Automobile Association’s (AA) is seeking a waiver to allow a recapitalisation and re-pricing of its £1.85bn leveraged financing, via MLA Barclays. The deal will turn the financing into an all-senior deal with the mezzanine and second-lien dent being taken out and the amount added to the B loan. Additionally, pricing on the A and B tranches has been cut 25bp, while pricing on the C loan has been lowered 50bp. Lenders are offered a 15bp waiver fee. Once the waiver passes, debt will comprise a £347m seven-year term loan A at 200bp, a £915m eight-year term loan B at 225bp and a £392m nine-year term loan C at 250bp, a £105m six-year receivables line at 225bp, a £100m six-year revolver at 225bp and a £150m seven-year acquisition line at 225bp. Previously, senior debt comprised a £373m six-year term loan A at 225bp over Libor, a £400m seven-year term loan B at 250bp, a £395m eight-year term loan C at 300bp, a £100m six-year revolver (including a £50m acquisition line) at 225bp and a £105m six-year receivables line at 225bp.