Aston Martin sold 50.1% of its non-automotive branding to secure the loan. Bondholders are threatening legal action after the terms finally surfaced. The secret branding sale went to US firm Authentic Brands, sources say. Aston Martin secured £550 million ($740 million) in debt financing last month thanks to credit firm HPS, owned by BlackRock. Now, a group of Aston Martin bondholders is threatening the company with legal action after it was revealed that part of the debt financing deal will require the automaker to sell a portion of its branding and naming rights. At the time the deal with HPS was announced, very few details were provided. However, unnamed sources have revealed that part of the HPS deal requires Aston Martin to transfer 50.1 percent of its non-automotive intellectual property to Authentic Brands, a US-based sports, media, entertainment and lifestyle platform. Read: Aston Martin Has Gone Bankrupt Seven Times And Just Borrowed $735 Million More Through the deal with HPS, Aston Martin will receive a £450 million ($605 million) secured term loan and could receive a £100 million ($134 million) delayed draw term loan, although this is conditional on the branding rights deal going through. Aston’s Secret Agreement The Financial Times reports that the group of bondholders in question sent a letter to Aston Martin’s board of directors over the weekend, warning them of potential legal action. They assert the new financing deal has moved assets out of their pool of collateral, adding they were also denied the opportunity to provide new financing to the automaker. They believe the deal with HPS breaches the terms of their lending agreement. This isn’t the first time that Aston Martin has resorted to selling its naming rights in exchange for a cash injection. Earlier this year it raised £50 million ($67 million) by selling the rights to use its name to the Aston Martin Formula 1 team. Aston Martin has declined to comment on the prospect of legal action from disgruntled creditors. After the deal was announced with HPS, Aston Martin’s chief financial officer described it as “important for the company as a whole.”
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