Aston Martin plans to raise £210mn by placing fresh shares in order to pay down a high-interest portion of debt that has hamstrung the business financially for the past three years.
In 2020, Aston took out a $100mn tranche of borrowing that came with a 15 per cent coupon and included a “payment in kind” element, a condition normally attached when investors believe the business will not have enough cash to make the full payment.
The move gave it much-needed financial breathing room at a time of poor sales and the collapse of its share price following its 2018 IPO, but lumbered the luxury-car maker with hefty payments every quarter that sapped its profitability.
Read the full story on the Financial Times here.