RAC Said to Seek 260 Million-Pound Loan for Carlyle Dividend

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RAC Ltd. is seeking a 260 million-pound ($421 million) loan to pay a dividend to its private-equity owner Carlyle Group LP, according to a person with direct knowledge of the deal.

The U.K. roadside-recovery company is offering to pay an interest margin of 550 basis points more than the London interbank offered rate for the seven-year debt, said the person, who asked not to be identified because the negotiations are private. The deal will be offered to investors this week.