Aston Martin secures GBP550 million debt financing
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said it has completed a new GBP550 million debt financing, boosting liquidity and refinancing existing borrowings as it seeks to support its long-term growth plans.
The luxury car maker said the financing comprises a GBP450 million senior secured term loan and a GBP100 million delayed draw term loan, both maturing in July 2031 and priced at 6.75% over the Sterling Overnight Index Average rate.
The facilities are led by investment funds and accounts managed by HPS Investment Partners.
Aston Martin said proceeds from the GBP450 million term loan have been used to repay its fully drawn GBP170 million super senior revolving credit facility, repay GBP20 million drawn under a financing facility provided by members of the Yew Tree Consortium, cover transaction costs and provide funding for general corporate purposes.
The revolving credit facility and the Yew Tree facility have both been cancelled.
Following the refinancing, the company said pro forma liquidity at June 30 rises to around GBP340 million.
The financing is secured against certain assets held in a newly incorporated subsidiary, together with other group assets. Aston Martin also retains capacity to incur an additional GBP100 million of junior debt.
Chief Financial Officer Doug Lafferty said: "This new GBP550 million debt financing significantly strengthens our liquidity, providing us with both additional resilience and further flexibility to execute our current and future product plans."
The company is due to report first-half results on July 29.
Shares in Aston Martin closed down 0.6% at 35.28 pence in London on Wednesday.
By Eva Castanedo, Alliance News senior economics reporter
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