Aston Martin Faces Bondholder Threat Over £550m HPS Financing
Creditors warn the deal transfers majority control of non-automotive branding to an HPS-linked vehicle, risking litigation that could block the funding.
Overview
- Aston Martin agreed a £550 million financing package with HPS consisting of a £450 million secured term loan and a £100 million delayed draw that can be triggered later.
- Reports say access to the additional £100 million is conditional on transferring 50.1% of the company’s non-automotive intellectual property to Authentic Brands, a US brand licensor with investment links to HPS.
- A group of bondholders owed about £1.3 billion has sent a letter before action to the board threatening legal steps to unwind the HPS deal or stop the proposed IP transfer.
- Creditors argue the structure moves valuable brand assets out of their collateral pool and breaches lending covenants, and legal advisers say claims could seek injunctions or reversal of parts of the financing.
- If a court blocks or unwinds the transaction Aston Martin could lose the conditional £100 million and face renewed funding pressure, and the move follows earlier monetisation of the brand as the company manages recurring cash strain.