...RAC Bond Co. is a whole business securitization of RAC Bidco Ltd.'s (RAC) operating businesses. RAC Bond Co.'s financing structure blends a corporate securitization of the operating business of the RAC in the U.K. with a subordinated high-yield issuance. The transaction is backed by future cash flows generated by the operating businesses, which include roadside services and insurance and financial services, but exclude RAC Insurance Ltd. and RACMS (Ireland) Ltd. The transaction features two classes of notes (A and B). The proceeds of the class A notes have been on-lent by the issuer to the borrower, via issuer-borrower loans, while those from the class B notes are held in escrow. They will be on-lent through an issuer-borrower loan upon satisfaction of the escrow conditions, as described below. The operating cash flows generated by the borrowing group are available to repay its borrowings from the issuer which, in turn, uses those proceeds to service the notes. The transaction will likely...
