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AA launches share sale to reduce debt
Date: 30 March 2015 | Author: Daniel Puddicombe
Motoring organisation the AA has announced it is launching a £200 million share sale in order to reduce its £2.7 billion debt pile.
The company said it would save around £45 million a year in interest payments and allow it to start paying a dividend.
It plans to issue £735 million of new debt which will be used to repay debts worth around £1bn.
"Our investment plans will enable us to revolutionise customer experience through new technology and strengthen the AA as the UK's pre-eminent motoring services organisation," said Bob MacKenzie, AA executive chairman.
The AA scooped three prizes in the 2015 BusinessCar Awards - Accident Management, Risk Management and Vehicle Recovery.
