RAC - Initiation on RAC - taking a position. AA - increasing position

All,

We have completed our analysis on RAC here, prior to the release of their results on Wednesday 26th February (with their conference call a fortnight later on 11th March).

We are taking a 5% of NAV long position in Class B notes. 

Similar to the AA, we expect RAC to show stable membership numbers in their release, with growth experienced in the B2B segment.  Following the refinancing at the beginning of February, we expect the Company to focus on deleveraging of the Class B notes, and would not be surprised if they have purchased some in the open market.

Tomas is the analyst.  

In relation to AA, we have increased our position in the Class B notes to 5% (from 2%).  

Regards,