Legal DealFolio - The AA Issuance of PIK Toggle Notes due 2019

International law firm Clifford Chance advised the AA on the issuance of GBP350m 9.5%/ 10.25% PIK toggle notes due 2019 by AA PIK Co Limited guaranteed on a senior basis by AA Limited. The Notes are unrated and structurally subordinated to the whole business securitisation and high yield issuance (together the WBS) of the AA that completed in July 2013. The first 18 months of PIK coupons will be serviced by a cash interest account pre-funded on closing. Thereafter payment of PIK coupons in cash will be dependent on receipt of dividend proceeds with an option to PIK. This important transaction for the AA and its sponsors Charterhouse, CVC and Permira constitutes the largest ever sterling PIK toggle note issuance and successfully closed to strong demand. The PIK toggle notes priced at the same level as the Class B Notes issued pursuant to the WBS rated BB by S&P. The Clifford Chance team involved in both the WBS and the PIK Toggle transactions was led by capital markets partner Steve Curtis working with partners Roderick McGillivray (banking), David Pearson (corporate) and Dan Neidle (tax). Steve Curtis was assisted by Cameron Saylor, Kathryn James and Matthew Ball, Roderick McGillivray was assisted by Matthew Dunn and Dan Neidle was assisted by Nicola Hemsley.

Deal Date:	29-11-2013	Practice Area:	Debt Capital Markets
Deal Title:	The AA Issuance of PIK Toggle Notes due 2019	Industry:	Support Services
Description:	International law firm Clifford Chance advised the AA on the issuance of GBP350m 9.5%/ 10.25% PIK toggle notes due 2019 by AA PIK Co Limited guaranteed on a senior basis by AA Limited. The Notes are unrated and structurally subordinated to the whole business securitisation and high yield issuance (together the WBS) of the AA that completed in July 2013. The first 18 months of PIK coupons will be serviced by a cash interest account pre-funded on closing. Thereafter payment of PIK coupons in cash will be dependent on receipt of dividend proceeds with an option to PIK. This important transaction for the AA and its sponsors Charterhouse, CVC and Permira constitutes the largest ever sterling PIK toggle note issuance and successfully closed to strong demand. The PIK toggle notes priced at the same level as the Class B Notes issued pursuant to the WBS rated BB by S&P. The Clifford Chance team involved in both the WBS and the PIK Toggle transactions was led by capital markets partner Steve Curtis working with partners Roderick McGillivray (banking), David Pearson (corporate) and Dan Neidle (tax). Steve Curtis was assisted by Cameron Saylor, Kathryn James and Matthew Ball, Roderick McGillivray was assisted by Matthew Dunn and Dan Neidle was assisted by Nicola Hemsley.
Financial Center:	London	Value:	100.01-500.00
Advised Party:	Issuer	Law Firm	Clifford Chance
Issuer Jurisdiction	United Kingdom	Listing Jurisdiction	United Kingdom
Classification:	Corporate Bonds Subordinated Debt	Lawyer	Steve Curtis

Practice Areas -

Debt Capital Markets Law Firms and Lawyers

Practice Areas - Debt Capital Markets Law Firms and Lawyers