The motoring group sometimes called the fourth emergency service has moved to refinance its debt pile and slash its hefty interest costs by millions of pounds a year. The AA plans to refinance up to £550 million of debt, which will be swapped for a new bond with a reduced coupon and longer maturity. The group also hopes to reduce £200 million of its lower-ranked and more expensive junior debt. The company said the refinancing would save £8 million a year and “improve its credit profile”. Martin Clarke, the AA’s finance director, said: “This refinancing is in line with our strategic objective, as set out at IPO, to reduce the cost of our debt and improve our credit profile.

Source: The Times November 18, 2016 06:35 UTC