Aston Martin plans £530m refinancing

The Aston Martin DB11

Aston Martin is looking to refinance through a £530m bond offering as the manufacturer continues its Second Century Plan to turnaround the business.

The Gaydon-based business has already achieved its first objective – halting and reversing a dramatic sales fall in 2014.

With revenues now going in the right direction, albeit with growing losses, it is now looking to strengthen its core offer and expand its portfolio.

It now has the ambition of bringing one new model to market every nine months until 2020, and has been buoyed by the successful launch of the DB11 which began shipping at the end of last year. It has reportedly sold two-thirds of this year’s DB11 production already.

The debt issue will support its expansion plans as well as refinancing its existing debt, the Financial Times has reported.

It said the company has met investors in London and New York with pricing expected on Friday.

Aston Martin has forecasted that its 2016 sales of £593.5m will grow to between £785m and £815m this year. It also expects a big leap in operational profitability, as measured by EBITDA (earnings before interest, tax, depreciation and amortisation). In 2017 it is forecasting EBITDA to be between £160m and £165m, which would be significantly up from £101.0m achieved in 2016, and more than double its 2015 level of £71.4m.

The group’s long-term expansion plans will be helped by the manufacturing plant it is building in St Athan, Wales, which will be fully operational in 2019.

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