RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating - S&P Global Ratings’ Credit Research

RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating

RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating - S&P Global Ratings’ Credit Research
RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating
Published Oct 02, 2023
4 pages (1992 words) — Published Oct 02, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

We assigned our preliminary 'BBB (sf)' rating to RAC Bond Co. PLC's class A3 notes. RAC Bond Co. PLC is a whole business securitization of RAC Bidco Ltd.'s operating businesses. The issuer's financing structure blends a corporate securitization of RAC's U.K. operating business with a subordinated high-yield issuance. LONDON (S&P Global Ratings) Oct. 2, 2023--S&P Global Ratings today assigned its preliminary 'BBB (sf)' credit rating to RAC Bond Co. PLC's class A3 notes. The class A3 notes' expected maturity date (EMD) is in September 2028. At closing, the issuance's proceeds will be used to redeem £200 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

  
Brief Excerpt:

...- We assigned our preliminary '### (sf)' rating to RAC Bond Co. PLC's class A3 notes. - RAC Bond Co. PLC is a whole business securitization of RAC Bidco Ltd.'s operating businesses. - The issuer's financing structure blends a corporate securitization of RAC's U.K. operating business with a subordinated high-yield issuance. LONDON (S&P Global Ratings) Oct. 2, 2023--S&P Global Ratings today assigned its preliminary '### (sf)' credit rating to RAC Bond Co. PLC's class A3 notes. The class A3 notes' expected maturity date (EMD) is in September 2028. At closing, the issuance's proceeds will be 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 we expect the new class A3 notes' coupon to exceed 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...

  
Report Type:

Ratings Action

Issuer
RAC Bond Co. PLC
Sector
Structured Finance
Country
United Kingdom
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating" Oct 02, 2023. Alacra Store. May 09, 2025. <http://www.alacrastore.com/s-and-p-credit-research/RAC-Bond-Co-PLC-Class-A3-U-K-Corporate-Securitization-Assigned-Preliminary-Rating-3065268>
  
APA:
S&P Global Ratings’ Credit Research. (). RAC Bond Co. PLC Class A3 U.K. Corporate Securitization Assigned Preliminary Rating Oct 02, 2023. New York, NY: Alacra Store. Retrieved May 09, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/RAC-Bond-Co-PLC-Class-A3-U-K-Corporate-Securitization-Assigned-Preliminary-Rating-3065268>
  
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