Aston Martin raised $735 million in debt financing to avoid bankruptcy
British luxury carmaker Aston Martin has secured new debt financing totaling approximately $735 million in an effort to stabilize its financial position. Throughout its history, the company has found itself on the brink of bankruptcy seven times and is once again facing serious financial difficulties.
The financial deal was led by HPS Investment Partners. The package includes a secured term loan of 450 million pounds sterling ($602 million) and a deferred loan of 100 million pounds sterling ($133 million).
In addition, the British automaker was granted a credit line for additional debt of another 100 million pounds (133 million dollars). According to Aston Martin CFO Doug Lafferty, the new financing significantly strengthens the brand’s liquidity, ensures financial stability, and provides greater flexibility to implement current and future product plans.
The 450 million pounds ($602 million) raised will be used to repay existing debt. Of this amount, $22 million will be paid to the Yew Tree Consortium, led by company co-owner Lawrence Stroll—the father of Lance Stroll, a driver for the Aston Martin Formula 1 team.
Aston Martin’s management expects to improve financial performance compared to last year, boost profitability, and increase cash flow by expanding its lineup with new core and special-edition models, according to Carscoops.
As a reminder, Ukrainians have been buying more gasoline-powered cars and have identified the most popular model.
Tesla ended the second quarter with record vehicle deliveries. The company delivered more than 480,000 electric cars to customers, significantly exceeding analysts’ forecasts and posting its best result for this period in its entire history.
