Strong demand sparks tightening in Aston Martin dollar notes offering; new whisper 10%-10½%

By Paul A. Harris

Portland, Ore., March 11 – Aston Martin Lagonda Global Holdings plc began officially marketing a £1.14 billion equivalent two-part offering of five-year senior secured notes (B3/B-/B) on Monday, according to market sources.

Strong demand for the dollar-denominated notes, with a target tranche size of $900 million, enabled the British carmaker to tighten early guidance on that tranche to a range of 10% to 10½%, down from the 10½% to 11% initial guidance heard Monday morning, according to a trader in New York.

At a size of $900 million the dollar-denominated tranche is fully spoken for in reverse inquiry, the source added.

The Rule 144A and Regulation S deal also features a £300 million minimum tranche.

The notes in both tranches become callable after two years at par plus 50% of the respective coupons.

Goldman Sachs is the sole physical bookrunner and will bill and deliver for the dollar-denominated notes. Barclays is the global coordinator, and Deutsche Bank and HSBC are the joint bookrunners for the dollar notes.

Barclays is a physical bookrunner and will bill and deliver for the sterling-denominated notes. Goldman Sachs is the global coordinator, and Deutsche Bank is the joint bookrunner for the sterling notes.

A roadshow that got underway on Monday is scheduled to run through Tuesday, with pricing expected on Wednesday, the trader said.

The Gaydon, U.K.-based luxury car designer and manufacturer plans to use the proceeds plus balance sheet cash to refinance its notes maturing in 2025 and 2026 and to repay amounts drawn on its revolver.

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