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27 Nov 2024 | 07:38

Aston Martin raises £210m to support growth and help liquidity

(Sharecast News) - Luxury carmaker Aston Martin has announced it has raised £210m through share and private debt placings to support its growth and investment strategy and shore up its balance sheet, one day after announcing its second profit warning within two months. The company, officially known as Aston Martin Lagonda Global, announced plans for the equity issue on Tuesday as it guided to full-year adjusted EBITDA of £270m-280m, compared with previous guidance for profits "slightly below" the £305.9m earned last year.

Aston Martin said it raised a total of £110m from the placing of 110m shares, while one of its directors subscribed for 1m shares for £1m; the company also announced the private placement of additional senior secured notes totalling £100m, which it says received strong support from bond holders.

"The net proceeds from the share offering and debt issuance are expected to provide Aston Martin with increased financial resilience and strength as the company maximises the potential of its fully reinvigorated core portfolio of class-leading next generation models," Aston Martin said in a statement on Wednesday.

Aston is hoping to invest around £2bn over the five years to 2027 to drive its electrification strategy, and will also use the financing to repay borrowings under its existing super senior revolving credit facility. Funds will also help pay fees and expenses, and be used for general corporate purposes.

"We thank our investors, including our strategic investors who continue to show strong support for the company, for their commitments and confidence in Aston Martin. With this financing successfully secured, we are now well positioned for growth, underpinned by the strength of our brand and the world-class product portfolio we have brought to market," said chief executive Adrian Hallmark.
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