By Adriano Marchese

 

--Aston Martin has arranged a GBP500 million financing package, including a share placing and loan refinancing

--The company has set new production, revenue, adjusted Ebitda targets for the next few years

 

Aston Martin Lagonda Global Holdings PLC said Tuesday that it intends to raise 125 million pounds ($162.8 million) as part of a larger financing package, and that it has entered into a technology agreement with Daimler AG's Mercedes-Benz.

The British luxury-car maker said it will issue 250 million new shares--representing 13.7% of the company's existing share capital--at a price of 50 pence a share.

The previous day's closing price in London was 52.15 pence.

The share placing is part of a fully committed and comprehensive financing package, which also includes GBP259 million equivalent of new second-lien notes, maturing in 2026, as well as a refinanced revolving credit facility of GBP87 million.

Aston Martin Lagonda also said it has signed an expanded and enhanced technology agreement with Mercedes-Benz for access to advanced technologies in exchange for new shares.

Under the agreement, Mercedes-Benz's equity stake will be increased up to a maximum of 20% in multiple stages. Mercedes-Benz will also receive the right to nominate one nonexecutive director to the board after its first shareholding increase.

As a result of the new agreement, the company said it has updated its strategic and product rollout plans. In particular, it said it is targeting volumes of around 10,000 units produced, with revenue of around GBP2 billion as well as adjusted earnings before interest, taxes, depreciation and amortization--a metric which excludes exceptional costs--of around GBP500 million by 2024 and 2025.

Between 2021 and 2025, Aston Martin said it has a target for capital expenditure of between GBP250 million and GBP300 million a year.

Aston Martin has also released its third-quarter updates, with revenue of GBP124 million in the period. It reported a swing to adjusted Ebitda loss of GBP29 million, compared with GBP244 million and GBP43 million in the prior year period, respectively.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

October 27, 2020 14:05 ET (18:05 GMT)

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