Aston Martin in £530m bond offering to refinance debt

Aston Martin has followed the successful launch of its latest sports car, the DB11, with a £530m bond offering to refinance existing debt and support its “second century” plan to expand the type of vehicles produced by the UK manufacturer.

The five-year debt issue for a carmaker made iconic by the James Bond franchise marks the latest step in a turnround plan designed to restore profitability, and comes with two-thirds of this year’s DB11 production already sold, according to a banker working on the debt sale.

Pricing for a mix of sterling high yield debt and at least $400m in senior secured notes is indicated at around a 7 per cent yield, and is expected to be announced on Friday following a management roadshow in London and New York this week.

The debt will be used to refinance existing arrangements due to mature next year, £319m of 9.25 per cent senior secured notes and £184m of 10.25 per cent senior subordinated pik notes.

The company plans to launch a sports utility vehicle and sedan in coming years, and the efforts to expand the brand and restore profitability may precede a stock market float or sale by its current owners, Kuwait’s Investment Dar and Italy’s Investindustrial.

The bond sale will be coordinated by JP Morgan, Deutsche Bank and Goldman Sachs.

Reporting by Dan McCrum