Aston Martin: Interesting Barometer Of Banks' Appetite For High Risk A&E

Aston Martin (AML LN) reported overnight as “in talks to address debt pile” with lending banks. Interesting to watch A&E willingness from lending banks.

• AML floated the equity in London in Sep-18 and, through further raises, a 2020 rescue from Lance Stroll and 2022 investment from Saudi’s PIF, has lost most of its equity value and seen multiple changes of CEO. The business has around USD1.4bn of near-term liabilities including a USD1.1bn secured bond due Nov-25.
• The business is growing revenues and profitable at the EBITDA level but servicing its debt pile is more than consuming operating cash flow. Not a meaningful credit name but, as we’re seeing a few “canaries in coalmines” (NYCB and PBB/DePfa), worth monitoring the willingness of lending banks to “amend & extend” a relatively high profile company.