Aston Martin Lagonda Global Conducts GBP575.8 Million Rights Issue -- Update

By Kyle Morris

Aston Martin Lagonda Global Holdings PLC said Monday that it is conducting a rights issue worth around 575.8 million pounds ($662.9 million), with the proceeds to be used to pay down debt and support future growth.

The U.K. luxury-car maker said the 4-for-1 fully committed and underwritten rights issue consists of 559 million new shares of 103 pence each, a discount of 79% to the closing price on Sept. 2.

The company said it has irrevocable commitments from Saudi Arabia's Public Investment Fund, the Yew Tree Consortium and Mercedes-Benz AG to take up their full entitlements, amounting to 44.7% of the issue.

The rights issue marks the final part of the around GBP653.8 million capital raised unveiled on July 15, the company said. On July 15, it said that it would raise GBP653 million via a discounted share placing and use the proceeds to meaningfully deleverage the balance sheet and expedite long-term growth.

Aston Martin said the actions follow a review of the capital requirements by the board and should support improvements in gross margin and meaningful earnings before interest, taxes, depreciation and amortization growth, as well as a reduction in leverage.

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(END) Dow Jones Newswires

September 05, 2022 03:02 ET (07:02 GMT)

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