Aston Martin Lagonda Global Holdings PLC (LSE:AML) said it is raising £575.8mln in a 4-for-1 fully committed and underwritten rights issue, which is part of a £653.8mln capital raise.
The Public Investment Fund, The Yew Tree Consortium and Mercedes-Benz AG have committed to take up their full entitlements, amounting to 44.7% of the total issue.
The issue price for the rights issue of 103p per new share represents a 78.5% discount from the closing price on 2 September.
Net proceeds from the capital raise will help Aston Martin repay existing debt, create value for shareholders, strengthen its financial resilience and improve the company's cash flow generation by reducing its interest costs.
The board believes the proposed capital raise will serve to further support its re-affirmed medium-term targets of approximately 10,000 wholesales, £2bn revenue and roughly a £500mln adjusted EBITDA by 2024/25, which would strongly position it for positive free cash flow generation from 2024, the company said in a statement.
It will also aim to maintain a substantial liquidity cushion to underpin and accelerate future capital expenditure and to support the execution of its targets in what remains a challenging operating environment, it added.
Aston Martin is at the beginning of the second phase of its transformation, which is aimed at increasing profitability and renewing its product offering, including electrification of the group's model range to ensure its future success and growth strategy.