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Aston Martin raises £550m loan to support product plans
The funding package includes a £450m senior secured term loan and a £100m delayed draw term loan, designed to bolster the automaker’s balance sheet as it pursues future models.
Aston Martin has secured a new £550 million loan package to strengthen its balance sheet and help fund current and future product plans, the company announced. The BBC Business reports the loans are being managed by HPS Investment.
The financing comprises a £450 million senior secured term loan, which is repayable ahead of other creditors and is backed by specific assets. It also includes a £100 million delayed draw term loan, which makes the money available at set points rather than upfront.
Aston Martin has struggled in recent years, cutting about 600 jobs in March. The company said the restructuring would deliver annual savings of about £40 million after reporting that last year’s net losses rose by a little over 50% to £493.2 million.
The company said its half-year results are set to be published on 29 July, and noted that it has been burning through cash. BBC Business also points to stiff competition in the global luxury car market and reduced demand as factors behind its challenges.