|Bid||72.45 x 0|
|Ask||73.35 x 0|
|Day's range||72.30 - 88.00|
|52-week range||4.50 - 1,100.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||27 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||1,849.11|
(Bloomberg) -- Aston Martin Lagonda Global Holdings Plc said it may need to tap into high-interest notes it was trying to avoid drawing down, even after a 536 million-pound ($663 million) capital infusion from a group led by billionaire Lawrence Stroll.The U.K. luxury carmaker doesn’t have sufficient working capital based on European Securities and Markets Authority rules, because the coronavirus has created “increased and unquantifiable uncertainty” in its business, Aston Martin said in a statement. That’s made it impossible to come up with a model for a “reasonable worse case downside,” it said.The shares fell as much as 9.3%.Aston Martin, which has struggled with cash flow and dealer-inventory back-ups since going public in 2018, had hoped that the fundraising approved by shareholders on Monday would obviate the need to seek additional money. But the coronavirus crisis has added a level of difficulty to the turnaround put in place with Stroll’s arrival.“Taking into account the proceeds of the capital raise, the company is of the opinion that the group does not have sufficient working capital to meet its requirements for 12 months” from February, when it published the original prospectus for the Stroll bailout, it said late Monday.The Canadian billionaire will take over as executive chairman of Aston Martin next month. His Yew Tree consortium is set to get a bigger chunk of Aston after it renogotiated the terms of the fundraising this month.Turnaround PlanThe liquidity warning notwithstanding, Aston Martin’s directors said they were confident that the company has enough access to loans. That includes $100 million of delayed draw notes issued in October 2019 that carry an interest rate of at least 12%.In a statement, Stroll said that he and his co-investors “continue to believe passionately in the future of Aston Martin Lagonda.”The investment, including 262 million pounds from his group, “gives the necessary stability to reset the business for its long-term future,” Stroll said. “We have a clear plan to make this happen,” including Aston Martin entering an F1 works team next season.Cash BurnTo fund its cash burn, the company tapped the debt markets twice last year, with a $190 million bond issued in April paying a 6.5% coupon and a $150 million bond with a 12% coupon priced in September. It could draw up to $100 million more before July.S&P lowered the company’s credit rating two notches to nine levels below investment grade on March 17, saying that even if the carmaker successfully completed the rights issue, declining sales of sports cars and uncertainties related to the covid-19 pandemic would weaken its financial performance and add liquidity pressures over the next six to 12 months.Aston Martin shares were down 7.4% at 8:22 a.m. in London. The stock has fallen 60% this year, and is now 89% below its IPO price. The automakers’s notes due April 2022 are indicated 0.5 pence lower on Tuesday at 70 pence on the pound, according to data compiled by Bloomberg.While the coronavirus pandemic could dent demand, the company says its order book “remains significant,” including over 2,000 commitments for the DBX SUV. The company is banking on the $189,000 DBX selling in higher volumes than the stylish sports cars made famous in the James Bond movies.Deliveries of the DBX are planned to begin in summer. They will compete with prestige brands like Lamborghini’s Urus and the Bentley Bentayga, which have already established themselves in the ultra-luxury SUV market.(Updates with Aston shares from third paragraph; bonds in 12th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain's Aston Martin said on Monday it is furloughing some employees as it handles the fallout from the coronavirus outbreak which has closed its car factories. The pandemic has shut both the luxury brand's plants, just as it starts production of its first sport utility vehicle, the DBX, crucial to a turnaround after disappointing sales last year contributed to a plunge in its share price. Aston confirmed its capital-raising plans on Monday that will see a consortium led by Canadian billionaire Lawrence Stroll take a stake in the company.
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Law firms and banks are scrambling to retrain senior staff in restructuring so they can help dozens of companies looking to raise emergency funds and rearrange debts as the coronavirus pandemic eats into corporate cash. Lawyers and bankers said companies mainly in the transport, travel and retail sectors had made the first approaches but in the next few months there could be a far wider range of firms as lockdowns and social distancing measures hit economies hard. "It has been pretty much non-stop," said a partner at a major U.S. law firm, who has been on calls all day since Friday and had four deals closing on Monday alone.
Aston Martin is increasing a 500-million pound capital-raising plan by 36 million pounds due to the coronavirus outbreak which will now see a consortium led by Canadian billionaire Lawrence Stroll take a roughly 25% stake in the firm. Aston, which has seen its share price tumble in recent days in addition to big losses last year after it failed to meet sales expectations, announced plans for Stroll to buy up to 20% of the company in January in a bid to turn around its fortunes. "In light of recent extraordinary equity market volatility related to concerns over Covid-19, the company has renegotiated certain terms relating to the proposed investment," the company said on Friday.
Aston Martin is increasing a 500-million pound ($617 million) capital raising plan by 36 million pounds due to the coronavirus outbreak which will now see a consortium led by Canadian billionaire Lawrence Stroll take a 25% stake in the carmaker. "There has been a significant change in the global market environment in which Aston Martin Lagonda operates," said Stroll.
Luxury carmaker Bentley said that maintaining free trade with the European Union was its priority over a Brexit deal with the United States, saying less favourable terms could force it to do more of the work on its British-made cars abroad. Britain formally left the EU on Jan. 31 but little will change in its relationship with the bloc this year, with London and Brussels negotiating a new relationship due to come into force from 2021. "As a luxury player with 24% of our sales in the EU and 90% of our parts purchases ... from the EU, it would help us greatly if we didn't have to pay more for them or get less margin back for the products that we finish and send," Chief Executive Adrian Hallmark told Reuters.
The maker of James Bond's favourite ride has launched three new vehicles — despite the cancellation of the Geneva Motor Show.
Canadian billionaire Lawrence Stroll, who is investing in carmaker Aston Martin, sees the opportunity to share Formula One technology with the firm's range of road cars, he said on Wednesday. "I feel Aston has really missed having a mid-engine programme, having that DNA in their racing, in their blood and now with the opportunity of returning to a works Formula One team for 2021 to be able to share technology from our Formula One team with our road car projects," he said. "I think this is the final cherry on the cake that Aston Martin really needed to complete its range and come back to its roots of racing."
The well documented troubles of this iconic luxury car brand lead me to avoid it at all costs. The post Why I would avoid this FTSE 250 stock at all costs appeared first on The Motley Fool UK.
There's a rescue plan in the works for Aston Martin Lagonda, but here's why I'm keeping my distance.The post The Aston Martin (AML) share price crashes 15%, and I see worse to come appeared first on The Motley Fool UK.
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Aston Martin shares slumped to a record low on Thursday after the British luxury carmaker said its losses ballooned last year and its chief financial officer would leave by the end of April. The firm, famed for being fictional agent James Bond's car of choice, posted a pretax loss of 104 million pounds ($135 million) last year compared with 68 million pounds in 2018 following a 9% decline in sales to dealers. Aston Martin is in the midst of restructuring after announcing last month that a consortium led by Canadian billionaire Lawrence Stroll would buy up to 20% of the company and existing shareholders would inject more cash.