Weekly Drive-By: European Automotive Credit

Research evidence excerpt

Weekly Drive-By: European Automotive Credit

J P M O R G A N Europe Credit Research

24 July 2026

Weekly Drive-By

European Automotive Credit

Europe Corporate Credit - Autos &

Auto Parts (HY) and Gaming

Jemma Permalloo, CFA AC

(44 20) 7134-8153

jemma.permalloo@jpmorgan.com

J.P. Morgan Securities plc

• You blink, it sinks - As the risk of a drop-down deal started making its rounds

last week, the creditor group was reported to have moved to changing their

cooperation agreement from a tiered structure in favour of a pro-rata structure.

Astonishingly quick was what we thought of the transaction Aston Martin

(ASTONM) announced which saw the £bonds (1.3% of the HY £benchmark

or 1.1% of market value) dropping ~13pts ahead of 2Q results next Wednesday

29th July. The group closed £550mn of new debt financing consisting of £450m

sr sec TL and a £100mn Delayed drawn TL @SONIA+6.75%, maturing July-

2031 and secured against some of the group’s assets within a newly

incorporated subsidiary as well as certain other assets of the group. We note that

per UK Companies House, a new private limited company by the name Silver

Holdco B Limited was incorporated on 14th July against AML’s Gaydon plant

address and with CEO Adrian Hallmark as director (link here). Management

did not confirm though nor expanded on the collateral package leaving us

wondering if intellectual property and other key assets were effectively moved,

though the J.Crew blocker that was added during the last issuance’s marketing

would likely require disclosures from the company, in our view.

From the ‘29s OM, we had estimated that the credit facilities basket

(£200mn) could be super senior while Restricted Payments and Permitted

Investments capacity could move assets outside the restricted group, up to