Aston Martin Lagonda Global Holdings Plc AMGDF Executive Chairman Lawrence Stroll confirmed that the loss-making British luxury carmaker is discussing with bankers to address a pending debt pile of approximately $1.4 billion.
What Happened: The talks will primarily focus on a $1.1 billion bond that is set to mature in November next year, reported Bloomberg on Monday. The company, grappling with a 10.5% coupon, is liable for annual payments of $120 million.
Stroll, in an interview with Bloomberg Television, stated, “We are currently studying with our bankers the most appropriate actions of how to deal with it. Obviously it will be addressed in the most appropriate manner possible and in the best interests of the company and its shareholders.”
Shares of Aston Martin rose by as much as 2.2% in early Tuesday trading in London as investors welcomed the news of the debt negotiations.
As per Benzinga Pro data, Aston Martin closed at $2.26 on Monday, in the OTC market.
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The company has previously raised funds from new major shareholders and is now seeking to refinance amidst the current turbulence in debt markets due to uncertainty around rate cuts.
Why It Matters: Aston Martin, known for its sports cars featured in the James Bond movie franchise, has been struggling with financial issues for some time. In 2022, the company brought in Saudi Arabia’s Public Investment Fund as part of Stroll’s turnaround efforts and shift to battery-powered sports cars.
Additionally, the company has been making moves in the electric vehicle (EV) space. In 2023, Aston Martin partnered with Lucid Group Inc LCID to accelerate its high-performance EV strategy. In return for access to Lucid’s technology, the British luxury automaker issued 28.4 million new ordinary shares to Lucid and made cash payments totaling about $232 million.
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