(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Thursday offered to buy USD200 million of outstanding debt following the completion of its equity raise on Wednesday.
The luxury carmaker's wholly owned subsidiary Aston Martin Capital Holdings Ltd has commenced offers to buy some of its outstanding 10.5% senior secured notes, due in 2025, and its 15% second lien split coupon notes, due 2026.
Senior notes are bonds that must be repaid before most other debts in the event that the issuer declares bankruptcy. Second-lien debt gets paid after the first or original first lienholder is paid off in the event of bankruptcy.
The outstanding value of Aston Martin's senior secured notes is USD1.18 billion while USD336.1 million remains outstanding from its second lien notes.
The offer expires on October 7, although Aston Martin Capital Holdings has the right to extend, amend or terminate the offers at any time.
The tender offer follows the company's capital raise of GBP653.8 million, selling 559 million new shares at 103p per share, which was completed on Wednesday. Aston Martin said that it planned to use up to half of the equity issuance for debt repayment.
Shares in Aston Martin were trading 9.9% lower at 128.20 pence each on Thursday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com
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Aston Martin Lagonda (AML)