Aston Martin Lagonda Capital Raise Part of Larger Financing Package -- Update
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
Between 2021 and 2025, Aston Martin said it has a target for
capital expenditure of between GBP250 million and GBP300 million a
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 firstname.lastname@example.org
(END) Dow Jones Newswires
October 27, 2020 14:05 ET (18:05 GMT)
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