...S&P Global Ratings today assigned its '### (sf)' credit rating to RAC Bond Co. PLC's class A3 notes. The class A3 notes' expected maturity date (EMD) is in November 2028. At closing, the issuance's proceeds were used to redeem ú200 million of a 2022 senior term facility (STF) with an EMD in May 2025, therefore extending the maturity of the issuer's debt. Under the refinancing, we expect the senior debt's cost to relatively increase, as the new class A3 notes' coupon exceeds the existing STF's coupon. The company also intends to use excess proceeds from the issuance to repay debt. 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 RAC's U.K. operating business with a subordinated high-yield issuance. The transaction is backed by the operating businesses' future cash flows, which include roadside, insurance, and financial services, but exclude RAC Insurance Ltd. and RACMS (Ireland)...
