Aston Martin is refinancing its investments as a new model programme rolls out with the new plant in South Wales coming on stream over the next two years.
The luxury car-maker needs to refinance almost $600 M in debt coming due next year and it’s seeking to replace it with £ 530 M in new dollar and sterling-denominated bonds.
Research firm CreditSights says the prestige brand has been burning cash through investments and engineering since 2008.
Aston Martin has funded this with repeated capital raising, including a £200 M issue of preference shares in 2015, and the debt it’s seeking to replace — £304 M of secured notes issued in 2011 and a 2014 issue of payment-in-kind notes on which $219 M is outstanding.
The flagship new DB11 model released late last year powered much of a 48 percent rise in fourth-quarter sales, the company said last month in its earnings statement.
The company plans to add one or two new models every year for seven years. It has pledged to venture beyond its staple offering of luxury sports cars such as the Vanquish, which has a top speed of 201 mph.
The developing St Athan factory will produce the DBX, an SUV it says will be “practical and family friendly,” rather than merely luxurious and fast. Aston Martin also expects to start production of an electric version of its Rapide sports coupe next year.