Business
Proposed Share Placing
Proposed Share Placing.
About this update from Aston Martin Lagonda Global Holdings Plc
[{"type":"text","content":"\n\nNOT FOR PUBLICATION, RELEASE OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.\nFURTHER, THIS ANNOUNCEMENT (INCLUDING THE APPENDICES) IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION. \n \n31 July 2023\nAston Martin Lagonda Global Holdings plc\n(\"Aston Martin \", the \"Company\" or the \"Group\")\nc.£210m share placing to accelerate net leverage reduction and support longer term growth\n \n· c.£210m placing to facilitate the early redemption of the Group's existing second lien split coupon notes, due 2026, as well as supporting capital investments related to the Company's electrification strategy\n· Building on the Company's improved financial position, including c.£460 million of liquidity at the end of H1 2023, the proceeds from the proposed placing will further deleverage the balance sheet, while providing further momentum to Aston Martin in delivering its 2024/25 financial targets\n· Proposed transaction provides the Company with an accelerated pathway to achieving a net leverage ratio towards c.1.0x in 2024/25 and becoming free cash flow positive from 2024, supported by a significant interest cost reduction, as well as achieving a net leverage ratio of below 1.0x in 2027/28\n· Existing strategic shareholders, who are represented on the Aston Martin board, have committed to subscribe for up to £184m\n \nProposed Share Placing\n \nBuilding on its improved financial position, Aston Martin today announces its intention to undertake a share placing, providing gross proceeds of approximately £210 million through a non-pre-emptive issue of new Ordinary Shares of £0.10 each (\"Ordinary Shares\") (the \"Placing\") to institutional investors. The proceeds from the Placing would allow the Company to further deleverage its balance sheet, as well as providing an accelerated pathway towards achieving its net leverage ratio targets and becoming free cash flow positive from 2024, supported by a significant interest cost reduction. In addition to the Company's overall liquidity of c. £460 million at ...