Aston Martin to price 2025 add-on notes at 109

Aston Martin Lagonda Ltd. will price the £70 million-equivalent, dollar-denominated fungible add-on to its 10.5% secured bonds due 2025 at 109. This follows guidance of 108.50-108.75. Accounts were asked to reconfirm orders by 4:30 p.m. GMT / 11:30 a.m. EDT today, for pricing thereafter.

J.P. Morgan (B&D) and Barclays are joint global coordinators and joint physical bookrunners. Credit Suisse, Deutsche Bank and HSBC are passive bookrunners.

Proceeds from the notes will be used for general corporate purposes, including working capital requirements and capital expenditure.

The outstanding $1.085 billion bonds were issued in October 2020, at par. They closed on Feb. 24 at 109.375 yielding 7.5%, according to S&P Global Market Intelligence. The deal was initially split between dollar- and sterling-denominated tranches with two-year non-call protection, but the sterling tranche was removed and the non-call schedule revised to four years.

Proceeds from that bond offering — together with an equity fundraising and a new £259 million tranche of second-lien notes due 2026 — will be used to repay secured debt and Coronavirus Business Interruption Loan Scheme debt, as well as provide cash for general corporate purposes and working capital.

Current ratings are CCC/Caa1.

Aston Martin Lagonda designs, develops, manufactures, markets and sells high-performance luxury sports cars. It is headquartered in Warwickshire in the U.K.