AA’s £280m bond helps rare debt-lowering LBO
Barclays took out the bridge financing for TowerBrook and Warburg Pincus’s takeover of UK roadside assistance group The AA on Wednesday, selling a £280m five year bond at 6.5%.
The LBO, unusually, actually deleverages the company. The sponsors are putting in £261m of equity alongside the bond issue, to pay off an existing £541m bond.
The AA was already running pretty hot, with senior leverage of 6.1 times Ebitda and leverage including the B2 notes, now being repaid, ...Already a subscriber? Login