LONDON - Aston Martin (LON:AML) Lagonda Global Holdings plc has announced plans to raise approximately £210 million through a combination of equity and debt, aimed at supporting its long-term growth strategy and enhancing liquidity. The luxury car manufacturer intends to issue £110 million in new shares and £100 million in senior secured notes.
The fundraising initiative comes as Aston Martin looks to capitalize on its fully refreshed core portfolio of next-generation models, which includes the DB12, Vantage, DBX707, and the upcoming V12 flagship Vanquish. The company expects to commence 2025 with a strong lineup, positioning it to meet its future growth ambitions.
Strategic investors, led by the Yew Tree Consortium, have pledged to subscribe for up to £73.5 million of the new shares. The debt issuance has received robust support from bondholders, reflecting confidence in Aston Martin's strategic direction under CEO Adrian Hallmark.
Despite delays in delivering a small number of ultra-exclusive Valiant models, Aston Martin has provided FY 2024 adjusted EBITDA guidance of £270m to £280m. The company remains focused on achieving its FY 2025 targets, which include delivery of free cash flow generation during FY 2025 and progressing towards its mid-term financial targets for FY 2027/28.
The net proceeds from the fundraising are expected to provide Aston Martin with increased financial resilience, support capital investments related to the company's electrification strategy, and repay borrowings under its existing credit facility. The additional liquidity is also intended to offer a buffer against potential unexpected headwinds during this transformational period.
The financing, which is subject to customary conditions, is expected to conclude with the admission of the new shares to the London Stock Exchange (LON:LSEG) on 29 November 2024.
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