Aston Martin Raises $150 Million Via Bond Sale To Ensure The DBX Gets Made

Aston Maritn has raised $150 million in a bond sale to help protect it from the consequences of a possible no-deal Brexit and support it until the DBX arrives.

According to The Financial Times, the senior secured notes that mature in April 2022 were priced with an annual coupon of 12 per cent and, under the terms of the deal, the company has the option of issuing another $100 million in the future and incur a 15 per cent interest. Aston Martin also revealed that it raised £20 million ($24.75 million) in a loan last month while also drawing down £70 million ($86.62 million) of its £80 million ($98.99 million) credit facility earlier in the year.

Also Read: Aston Martin CEO Says The DBX Is The Most Important Model In Its History

The British car manufacturer stated in July that it may need to raise additional funds to tide it over until deliveries of the long-awaited DBX SUV start in the second quarter of 2020. Production of the vehicle will be handled by its new plant in Wales and the costs involved in getting the site prepared and developing the DBX have weighed heavily on the firm.

“This is intended to substantially and materially banish any thoughts that somehow we don’t have the money to get to DBX,” Aston Martin chief executive Andy Palmer stated. “We’re used to running this business in a very lean manner. The public markets make a merit of ensuring that there’s sufficient liquidity there. That is what has been burning us over the past 12 months.”

Shares in Aston Martin have plummeted two-thirds since the company’s IPO. Analysts at Bank of America Merrill Lynch commented that “two rounds of rescue finance within 12 months following an IPO may be unprecedented.”