A group of bondholders have warned Aston Martin they may begin legal proceedings over its £550 million financing arrangement with HPS Investment Partners. The bondholders, owed £1.3 billion, have sent a letter before action to the board, arguing the deal places assets beyond their reach and breaches existing debt terms. The financing includes a £450 million term loan and a separate £100 million facility that depends on transferring a 50.1% stake in non-automotive intellectual property to Authentic Brands, in which HPS holds a stake. The creditors contend the structure and IP transfer reduce their collateral value and were not offered the chance to provide the funding themselves. Aston Martin has not disclosed full terms to bondholders, but its CFO described the arrangement as important for the company as a whole.
Aston Martin Lagonda Global Holdings PLCBondholders threaten legal action over £550m financing, alleging breach of debt terms and reduced collateral.