Aston Martin secures $735 million financing led by BlackRock-owned HPS Investment Partners
Details of Aston Martin's New Financing and Strategic Initiatives
Overview of the Financing Deal
July 22 (Reuters) - Aston Martin has secured £550 million ($735.57 million) in new debt financing led by funds managed by BlackRock-owned HPS Investment Partners, it said on Wednesday, bolstering liquidity at the loss making luxury carmaker.
The British company, known for its long association with the James Bond movie franchise, has been burning through cash while grappling with falling sales hurt by U.S. tariffs and weak demand in China.
Breakdown of the Financing Structure
The financing comprises a £450 million secured term loan (SSTL) and a £100 million delayed draw term loan, and a separate £100 million permitted debt incurrence capacity.
Statement from Aston Martin's Finance Chief
"This new £550m debt financing significantly strengthens our liquidity, providing us with both additional resilience and further flexibility to execute our current and future product plans" said Finance chief Doug Lafferty in a statement.
Profitability Push and Strategic Measures
PROFITABILITY PUSH
In efforts to turnaround its finances, the 113-year-old automaker has been cutting costs, including laying off a fifth of its workforce, and delaying investment in electric vehicle technology.
It had also struck a deal to sell perpetual branding rights to its Formula One team.
Expected Financial Improvements
With the initiatives in place, and supported by its portfolio of special models, Aston expects its financials including margin expansion and cash-flow generation to improve.
Aston Martin said the financing would bolster its balance sheet and increase pro forma liquidity to about £340 million as of June 30.
Upcoming Financial Results
The group's half-year 2026 results are set to be published on July 29.
($1 = 0.7477 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Tasim Zahid and Nick Zieminski)
