AA Group, the roadside recovery and insurance division of Acromas Holdings Ltd., will meet with lenders tomorrow as it seeks to raise the loan portion of its 3.4 billion-pound ($5.2 billion) refinancing, according to three people with knowledge of the matter.
Syndication of the loans will be targeted at banks, said two of the people, who asked not to be identified because the transaction is private. The debt being offered totals about 1.8 billion pounds, one of the people said, after AA Group sold 1.3 billion pounds of bonds this week.
Acromas, controlled by private-equity companies Charterhouse Capital Partners LLP, CVC Capital Partners Ltd. and Permira Advisers LLP, is refinancing as it seeks to separate AA Group from Saga, bond marketing documents show. The AA was acquired by Permira and CVC funds in 2004 and then merged with Saga, controlled by Charterhouse, in 2007 backed by 4.8 billion pounds of borrowings, according to Permira’s website.
The bank facilities will have equal seniority with the 625 million pounds of Class A notes and rank before 655 million pounds of Class B debt, according to a Standard & Poor’s report. S&P rated the Class A notes BBB- and graded the Class B securities BB. The loans and the Class A bonds total 2.4 billion pounds, S&P said in a separate report.
Paul Green, a spokesman for Folkestone, England-based Acromas, declined to comment on details of the financing.
Deutsche Bank AG, Royal Bank of Scotland Group Plc, Bank of America Corp., Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Plc, HSBC Holdings Plc, Lloyds Group Banking Plc, Royal Bank of Canada and UBS AG are arranging the loans, the bond documents show.
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