Key facts
- Aston Martin is in talks with potential financing providers.
- The company is focused on ensuring sufficient liquidity to support its strategy.
- A Bloomberg report identified HPS Investment Partners as a potential lender.
- The proposed financing may involve a 'drop-down' transaction to secure assets.
- Aston Martin has faced challenges with cash burn and declining sales.
Luxury carmaker Aston Martin confirmed on Friday that it is engaged in discussions with potential financing providers to bolster its liquidity. The statement followed a Bloomberg News report indicating the company was in talks with lenders, including HPS Investment Partners, which is owned by BlackRock.
Aston Martin stated that it regularly evaluates its capital structure and strategic options, emphasizing its commitment to maintaining sufficient liquidity to execute its strategy. The company's shares fell 2.3% in London trading following the news.
The Bloomberg report suggested that the proposed financing would be secured through a 'drop-down' transaction, where company assets are transferred beyond the reach of existing creditors. HPS Investment Partners declined to comment on the matter.
The British automaker has been grappling with significant cash burn and declining sales, exacerbated by factors such as U.S. tariffs and weak demand in China. Aston Martin reported another quarterly loss in April. In the same month, the company secured a £50 million ($67.2 million) funding boost from a consortium led by its top shareholder, Lawrence Stroll, bringing its liquidity to £230 million at the end of the March quarter.