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Aston Martin 7% 5-year retail bond.

Gilts, bonds, and interest-bearing shares
stevensfo
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Aston Martin 7% 5-year retail bond.

#448662

Postby stevensfo » October 8th, 2021, 8:46 am

More info:
https://www.astonmartinf1.com/investor-relations

I like the relatively short life of the bond, but 7% sets a few alarm bells ringing.

Steve

Alaric
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Re: Aston Martin 7% 5-year retail bond.

#448677

Postby Alaric » October 8th, 2021, 9:42 am

stevensfo wrote:More info:
I like the relatively short life of the bond, but 7% sets a few alarm bells ringing.


https://www.hl.co.uk/shares/shares-sear ... nd-reports

The Company appears to be losing money and hasn't paid a dividend in years. The 7% would include the market's demand for a risk premium to compensate for the risks of the Company defaulting on the loan in some manner.

88V8
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Re: Aston Martin 7% 5-year retail bond.

#448688

Postby 88V8 » October 8th, 2021, 10:09 am

Is it three times they've gone bust, or four...
I love the older cars, but 7% not enough for me.

V8

stevensfo
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Re: Aston Martin 7% 5-year retail bond.

#448691

Postby stevensfo » October 8th, 2021, 10:22 am

Thanks for the info, guys. I didn't know a thing about the company.

I think that for now, I will confine any interest in Aston Martin to the James Bond films.


Steve

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Re: Aston Martin 7% 5-year retail bond.

#448700

Postby Allitnil » October 8th, 2021, 10:45 am

FWIW, the company behind this is AMR GP Ltd (see https://en.wikipedia.org/wiki/AMR_GP) rather than Austin Martin Lagonda.

AMR GP is the company that runs the Austin Martin Formula One racing team and is owned by a consortium led by Lawrence Stroll whose son, Lance, drives for the team. Other than the name & sponsorship there's no connection with the car manufacturer.

Gan020
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Re: Aston Martin 7% 5-year retail bond.

#448750

Postby Gan020 » October 8th, 2021, 1:22 pm

I've read the prospectus now and would advise anyone interested in this bond to do the same.

I got up this morning to find a new retail bond and one that looks it will be a decent size. The prospectus says up to £250m although I doubt it will get anywhere near that. It doesn't actually specify a size they are looking for.

Regrettably as I read the prospectus I became less and less excited. I'm not sure why because 7% was already telling me there was risk.

The money is to build a wind tunnel for the F1 team and to repay £15m to Barclays. We get security over the wind tunnel.

In summary and in essence the company loses huge amounts of money as does the guarantor company so what it comes down to is faith that Stroll will support the group. Of course he's a businessman and would not want to compromise his other ventures and he's in the top 1000 billionaires or something like that.

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Re: Aston Martin 7% 5-year retail bond.

#450463

Postby Myfyr » October 15th, 2021, 8:03 pm

Gan020 wrote:I've read the prospectus now and would advise anyone interested in this bond to do the same.

I got up this morning to find a new retail bond and one that looks it will be a decent size. The prospectus says up to £250m although I doubt it will get anywhere near that. It doesn't actually specify a size they are looking for.

Regrettably as I read the prospectus I became less and less excited. I'm not sure why because 7% was already telling me there was risk.

The money is to build a wind tunnel for the F1 team and to repay £15m to Barclays. We get security over the wind tunnel.

In summary and in essence the company loses huge amounts of money as does the guarantor company so what it comes down to is faith that Stroll will support the group. Of course he's a businessman and would not want to compromise his other ventures and he's in the top 1000 billionaires or something like that.


7% is a good interest rate and I was tempted. You have now put me off!

I’m out!

ReformedCharacter
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Re: Aston Martin 7% 5-year retail bond.

#450473

Postby ReformedCharacter » October 15th, 2021, 8:34 pm

88V8 wrote:Is it three times they've gone bust, or four...
I love the older cars, but 7% not enough for me.

V8

Yes, they've made some great cars. But according to Wikipedia they've been in financial difficulties almost since inception. Wikipedia claims AM has gone bankrupt 7 times in its history. The article mentions 'financial difficulties', lack of capital, 'rescued' etc. in almost every paragraph. Forever hope over experience for investors.

https://en.wikipedia.org/wiki/Aston_Martin

RC

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Re: Aston Martin 7% 5-year retail bond.

#450501

Postby Wizard » October 15th, 2021, 11:09 pm

Allitnil wrote:FWIW, the company behind this is AMR GP Ltd (see https://en.wikipedia.org/wiki/AMR_GP) rather than Austin Martin Lagonda.

AMR GP is the company that runs the Austin Martin Formula One racing team and is owned by a consortium led by Lawrence Stroll whose son, Lance, drives for the team. Other than the name & sponsorship there's no connection with the car manufacturer.

As a big F1 fan it is pretty clear to me this team is not run like the others. Stroll jnr is not IMHO worthy of his seat and if his father did not own the team would have got the boot instead of Perez. Of course there are other billionaire’s sons with F1 drives bought for them by their parents’ money, but Stroll jnr is unique that his father was willing to buy a team to ensure his son retained his drive. This to me is relevant as it means I see little reason for Stroll snr to continue to stand behind the team as and when Stroll jnr is no longer interested in a drive.

Gan020
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Re: Aston Martin 7% 5-year retail bond.

#450574

Postby Gan020 » October 16th, 2021, 1:06 pm

I've gone for a few. A small position.

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Re: Aston Martin 7% 5-year retail bond.

#450676

Postby tincture » October 16th, 2021, 10:41 pm

Thanks for the warning guys.
I'm steering well clear

AsleepInYorkshire
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Re: Aston Martin 7% 5-year retail bond.

#450680

Postby AsleepInYorkshire » October 16th, 2021, 11:33 pm

Stroll is asking "you/us" to support his hobby which in turn keeps his son in a racing car

There are only ever going to be two winners with this bond. And one of them may not win - then everyone except Stroll looses

AiY

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Re: Aston Martin 7% 5-year retail bond.

#460493

Postby 88V8 » November 24th, 2021, 9:26 am

stevensfo wrote:I like the relatively short life of the bond....

Even shorter than one might have thought... actually, zero ...
The Aston Martin Formula One team has shelved a proposed five-year sterling retail bond to help fund its new factory because more attractive sources of financing are available, it said

https://www.channelnewsasia.com/sport/aston-martin-f1-team-shelves-proposed-retail-bond-2284361

V8

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Re: Aston Martin 7% 5-year retail bond.

#460495

Postby pje16 » November 24th, 2021, 9:29 am

stevensfo wrote:I think that for now, I will confine any interest in Aston Martin to the James Bond films.
Steve

Seems the best idea to me
If it seems too good to be true..... :roll:

stevensfo
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Re: Aston Martin 7% 5-year retail bond.

#460596

Postby stevensfo » November 24th, 2021, 3:41 pm

pje16 wrote:
stevensfo wrote:I think that for now, I will confine any interest in Aston Martin to the James Bond films.
Steve

Seems the best idea to me
If it seems too good to be true..... :roll:


Exactly. I know nothing about cars and the rate seemed too good to be true.

My wife is an expert. She knows that blue cars are much better than grey cars and white cars are pretty good as well.

I have to agree. Grey cars are pretty awful and black cars are okay, but I do love blue cars.

Even though the gearbox in my blue Mini Metro fell out. 8-)

But my wife has an old blue Mazda convertible and it's doing well.

So we're sticking to black, blue and white cars. :lol:

Steve

pje16
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Re: Aston Martin 7% 5-year retail bond.

#460600

Postby pje16 » November 24th, 2021, 4:00 pm

stevensfo wrote:So we're sticking to black, blue and white cars. :lol:
Steve

My current and last car, both black
Love the shine when they're clean
and use products to prolong the length they look like that

CliffEdge
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Re: Aston Martin 7% 5-year retail bond.

#471736

Postby CliffEdge » January 10th, 2022, 12:08 pm

I have a black car. What products do you use?

pje16
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Re: Aston Martin 7% 5-year retail bond.

#471738

Postby pje16 » January 10th, 2022, 12:16 pm

Mine is saaphire black
this is brilliant to give it a shine and just wait til it rains
boy does it make the car look good
https://www.eurocarparts.com/p/sonax-xt ... VJEALw_wcB

I got myself a 5 litre one from Amazon
https://www.amazon.co.uk/SONAX-287500-5 ... 964&sr=8-3

CliffEdge
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Re: Aston Martin 7% 5-year retail bond.

#471748

Postby CliffEdge » January 10th, 2022, 1:00 pm

pje16 wrote:Mine is saaphire black
this is brilliant to give it a shine and just wait til it rains
boy does it make the car look good
https://www.eurocarparts.com/p/sonax-xt ... VJEALw_wcB

I got myself a 5 litre one from Amazon
https://www.amazon.co.uk/SONAX-287500-5 ... 964&sr=8-3

Thanks


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