RAC Bond Co Plc (Class B1 5.00% May 2046): 02 August 2017

The RAC is the second-largest roadside assistance provider in the UK, representing approximately 29.4 % of the UK roadside assistance market by value. In addition to its core roadside assistance business, it also offers insurance broking, motoring services and telematics and data services to cater for a wider range of motorists’ needs. RAC generated revenue of £514 million EBITDA before exceptional items of £185 million for the twelve months ended 31 March 2017.

On and from the Class B1 Issue Date, the Class B1 Notes will be secured by substantially all the Issuer’s property, assets and undertaking, which security will also be shared with, among others, the Class A Notes. The Class B1 Notes will rank junior to the Class A Notes with respect to the application of enforcement proceeds, other than in respect of the Topco Security. The Class B1 Loans will be secured by, among other things, mortgages or fixed charges in respect of the Obligors’ freehold and leasehold interests in all the properties owned thereby and fixed and floating charges over all other property, assets and undertaking of each Obligor, which security will also be shared with, among others, the Class A Loans, the Initial STF Facility, the Initial WC Facility and the Liquidity Facility, together with certain hedging arrangements and pension liabilities, as described in the prospectus.


CRR 405: No retention representation has been made in relation to this transaction. The Issuer has considered, and obtained legal advice as to, the applicability of the Risk Retention Requirements to this transaction and is of the opinion that the Class B1 Notes do not constitute an exposure to a “securitisation position” for the purposes of the EU Risk Retention Requirements.