Aston Martin Raises £135m Debt for Production Expansion

• Aston Martin has raised £135m through debt placement to strengthen its financial position and support its production ramp-up.
• The new funding includes 10% senior secured notes and 10.4% senior secured notes, maturing in 2029.
• Aston Martin expects to use the proceeds to repay borrowings under its existing super senior revolving credit facility.

Aston Martin has raised £135m through a debt placing as it looks to shore up the balance sheet ahead of a production ramp-up later this year.

The marque said it had raised around $90m (£70.7m) by issuing 10 percent senior secured notes and a further £65m through 10.4 percent senior secured notes, due to mature in 2029.

Net proceeds from the offering are expected to be used by Aston Martin to repay borrowings under its existing super senior revolving credit facility.

The carmaker has struggled for years under a burgeoning debt pile since listing in 2018. Billionaire chair Lawrence Stroll has in the past looked to the firm’s backers, which include the Chinese carmaker Geely, for additional funds.

In March, Aston Martin successfully undertook a £1.15bn refinancing exercise in a bid to secure its position.

It comes after losses widened over the first half, ahead of the much-anticipated launch of a number of models in the second half of the year.

“Last week at our first half 2024 results we highlighted the positive progress made by Aston Martin so far this year as we continue to execute our immense product transformation, which will support volume growth and sustainable positive free cash flow generation later this year,” Doug Lafferty, Aston Martin Chief Financial Officer, said in a statement.

He added: “Following positive feedback after the results from the capital markets with encouraging demand from the Company’s existing bond holders, we are pleased to announce today that we have successfully priced a £135m equivalent private placement.

“These new senior secured notes, along with the refinancing completed in March 2024, provide Aston Martin with additional liquidity as we continue an exciting second half of the year.”

Shares fell just over one per cent in early morning trading on Friday.

By CityAM

More Top Reads From Oilprice.com:

• Venezuela's Election Authority Declares Maduro Victor in Disputed Election
• Exxon Tops Q2 Estimates on Record Permian and Guyana Production
• Chevron Ditches California for Texas