RE: Aston front page of the business pages17 May 2021 21:40
Carpymick – re your posts of 23:08 and 23:28 yesterday, the relevant places are page numbers 168, 169 and 171 of the prospectus. The 1st part states "Prior to 1 November 2024, the Note Issuer [i.e. AML] may redeem, at its option, the New Senior Secured Notes [i.e. the $1,085,500,000 million notes at 10.5%] in whole or in part, by paying a “make-whole” premium. From 1 November 2024, the Note Issuer may redeem, at its option, the New Senior Secured Notes, in whole or in part, at 100.000% of the principal amount of New Senior Secured Notes redeemed, plus accrued and unpaid interest and additional amounts, if any". Make-whole premium is not defined and only used in 2 places in the prospectus. In my view that is all interest that would have been paid if the notes ran their term, lender's legal costs etc.
It then goes on to state "Prior to 1 November 2024, the Note Issuer may redeem, at its option, up to 40% of the New Senior Secured Notes at 110.500%, plus accrued and unpaid interest and additional amounts, if any with an amount equal to or less than the net cash proceeds from one or more Equity
Offerings (as defined in the New Senior Secured Indenture) to the extent such net cash proceeds are received by or contributed to Aston Martin Investment Limited; provided that in each case the redemption takes place not later than 180 days after the closing of the related Equity Offering and not less than 50% of the original aggregate principal amount of the New Senior Secured Notes originally issued on 16 November 2020 remain outstanding immediately after the occurrence of each such redemption." This is why I thought they could only redeem a fraction. I would add the prospectus makes clear this is governed by New York law so the provisions pasted here may have an entirely different meaning in a New York court to my English common sense approach.
You then have "the Second Lien Notes will accrue at the rate of 15.0 per cent. per annum, comprised of 8.89 per cent. cash interest per annum plus 6.11 per cent. interest paid in kind per annum". These have different early termination provisions – "Prior to 1 November 2023, the Note Issuer may redeem, at its option, the Second Lien Notes in whole or in part, by paying a “make-whole” premium. From 1 November 2023, the Note Issuer may redeem, at its option, the Second Lien Notes, in whole or in part, at 108% of the principal amount of Second Lien Notes redeemed, which redemption price reduces to 104% on 1 November 2024 and further reduces to 100% on 1 November 2025, in each case, plus accrued and unpaid interest and additional amounts, if any". Perhaps these notes may be redeemed in November 2023.
Key points from original post I made that I re-iterate are (i) the management were happy with these rates and (ii) I am expecting us to be lumbered with these rates for some time. Agree it is a drain and effects profitability. But it is a known issue and the business is being turned around by Stroll, Moers, Grego
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