25th Sep 2019 09:08
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Wednesday said it has completed the pricing of USD150.0 million in 12% senior secured notes due mid-April 2022.
The cash raised will be used to improve liquidity as well as repaying short-term borrowings and related transaction fees, Aston Martin said. Interest on the senior secured notes will accrue at the rate of 12% per annum, with the associated interest charge in the 2019 results expected to be GBP5 million.
The sports car manufacturer said Aston Martin Capital Holdings Ltd, its subsidiary issuing the debt, also has an option to issue up to USD100.0 million in additional notes. If these notes are issued unsecured, the interest will accrue at the rate of 15% per annum, the company explained.
The issuance of these additional noted is subject to a condition of 1,400 orders of the new DBX SUV being received within nine months of the secured notes issuance, Aston Martin said.
Aston Martin Lagonda Chief Financial Officer Mark Wilson said: "What we have announced today is a cost and time-effective structure that immediately strengthens our liquidity in the short-term and the option to draw further funding as we successfully execute the plan.
"Aston Martin's first sport utility vehicle, the DBX, remains operationally on track and we are very pleased with the reception the car received at Monterey Car week during August."
Turning to trading, Wilson noted: "Demand for our Special vehicles remains strong with the Aston Martin Valkyrie hypercar sold out and excess customer demand for the mid-engined Valhalla. Additionally, the DB4 GT Zagato Continuation cars are now in production and on track for delivery by the end of 2019."
Aston Martin said it had 806 orders in production in total as of July 1 and expects to meet current analyst consensus for its key financial metrics in 2019, despite "continuing pressure" on sales volumes. It said 2020 capital expenditure is not expected to exceed GBP350 million.
Looking ahead, the FTSE 250-listed company said it will continue to keep its strategic financing options under review.
Aston Martin shares were trading 4.8% lower on Wednesday in London at 547.40 pence each.
By Evelina Grecenko; [email protected]
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