Aston Martin - comment

The company has not waited long after completing its rights issue to launch its bond tender. Aston Martin is prioritising cash in its pocket rather than fretting about liability management so the size is $200m rather than the £300m we expected. In today’s high yield market, a 10.5% coupon for a SSN looks less egregiously expensive than it did 6-months ago, and the recent GBP/USD rate move will have made a tender more expensive.

The tender is via a Dutch auction with a minimum price of 100.0 for the 10.5% SSNs and 105 for the 15% SUNs. The auction ends on 7th October.