STOCKS | Aston Martin Financing Deal Triggers Bondholder Lawsuit

Aston Martin has struck a financing deal with HPS, Blackstone's private credit arm, for up to 550 million pounds, secured against the company's core trademarks and brand rights. According to Sina Finance, the deal has angered holders of 1.3 billion pounds of bonds, and the parties are heading toward high-stakes litigation. On July 22, Aston Martin said the agreement includes an initial 450 million pounds of borrowing, with an option to add another 100 million pounds later. As part of the arrangement, nearly 200 trademark rights, including the “Aston Martin” name and winged logo, were transferred to the Cayman Islands entity Silverco to secure HPS's loan. Existing creditors had previously offered financing to the company but were rejected. According to Sina Finance, a creditor group including London-based hedge funds Arini Capital Management and Tresidor Investment Management has asked a New York court for discovery, seeking documents and testimony from HPS, Authentic Brands, and their advisers Moelis and Lazard ahead of a lawsuit in the United Kingdom. Aston Martin CEO Adrian Hallmark defended the transaction, saying it gives the company “additional resilience and flexibility to execute current and future product plans.” The deal pushed the company's bond prices lower and drove its credit rating deeper into junk territory.