AA and Saga looking to refinance, then split

The collective group, Acromas, has around £4.3bn of bank debt due to mature in 2015. According to reports, the group's private equity backers are hoping to take advantage of the buoyant debt market where, in particular, US investors are mopping up corporate debt because of low interest rates. 

Following the long-awaited refinancing, it is believed the group will be split up, with AA likely to be sold off before a possible flotation of Saga.

Acromas was unable to comment on market speculation but said that it had always planned to refinance the business well in advance of its September 2015 deadline.

CVC and Permira merged car breakdown recovery service AA with over-50s financial and travel service provider Saga in June 2007. Saga was acquired by Charterhouse in 2004 in a deal worth £1.35bn. CVC and Permira also purchased AA in 2004, in a deal worth £1.75bn.

Curiosity over the realisation of Acromas has been growing among market observers in recent years. With both companies having sat in private equity portfolios for nearly 10 years, the group's sheer size has had many wondering how it could be divested. More recently, rumours have been circulating regarding the possible division of the group to make the assets more palatable for new investors. The news of the £4bn refinancing has made the group's split more of a reality.

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• Topics
• Exits
• Financials
• Consumer
• CVC Capital Partners
• Permira
• Charterhouse Capital Partners
• Refinancing