Aston Martin is transferring 50.1 percent of its non-automotive intellectual property to Authentic Brands, a US-based sports, media, entertainment and lifestyle platform. The transfer is part of a debt financing deal with credit firm HPS, which is owned by BlackRock.
The financing deal, secured last month, provides Aston Martin with £550 million ($740 million). Under the terms of the agreement with HPS, the company will receive a £450 million ($605 million) secured term loan and could receive a £100 million ($134 million) delayed draw term loan, contingent on the branding rights deal.
The sale of non-automotive intellectual property is intended to help refinance debt while keeping road cars and Formula 1 rights separate.
Bondholder disputes
The Financial Times reports that a group of Aston Martin bondholders sent a letter to the company's board of directors warning of potential legal action. These bondholders assert that the new financing deal moved assets out of their pool of collateral and that they were denied the opportunity to provide new financing to the automaker. Furthermore, the bondholders believe the deal with HPS breaches the terms of their lending agreement.
Aston Martin has declined to comment on the prospect of legal action from the creditors. However, the company's chief financial officer described the HPS deal as “important for the company as a whole.”
This transaction follows an earlier move this year where Aston Martin raised £50 million ($67 million) by selling the rights to use its name to the Aston Martin Formula 1 team.
Percentage of intellectual property transferred to Authentic Brands as part of the HPS deal.
