Invest in a F1 team - AMR GP Finance PLC 7% 2026

6022tivo

Thoughts on this??

OBVIOUSLY CAN LOSE ALL YOUR MONEY!!!! BE AWARE

1k min, get paid 7% PA, paid every 6 months.
Bond paid back after 5 years. 

1k in today, return 1350?

Documents below, but may need a sign in.. 

I'm tempted for a punt, can't see the Aston Martin name getting dragged down and investors losing money over this. F1 is very glamorous as well. 






https://kllkazstornorth03.blob.core.windows.net/killikandco/New Bond Issues/AMR Prospectus OCt 2021.pdf

https://kllkazstornorth03.blob.core.windows.net/killikandco/New Bond Issues/AMR Information_Booklet Oct 2021.pdf

MaxiRobriguez

6022tivo said:

1k in today, return 0?

Fixed that for you.

Thrugelmir

6022tivo said:

I'm tempted for a punt, can't see the Aston Martin name getting dragged down and investors losing money over this. F1 is very glamorous as well. 

As a car company there's always the risk.  The name will live on regardless. 

MX5huggy

Aston Martin has gone bankrupt 7 times in its its history. 

The racing team is on maybe its 6th different legal entity in the last 15 years.
Jordan
Midland
Spyker
Force India 
Racing Point
AMR.

dunstonh

The interest rate reflects the loss potential.  Anything higher than base plus 2% indicates high risk.  Plus, you have no FSCS protection and its 100% loss potential.

I'm tempted for a punt, can't see the Aston Martin name getting dragged down and investors losing money over this. F1 is very glamorous as well. 

It isn't Aston Martin though.  It's Aston Martin Racing.  A different company.  Subsidiary companies can fail without the parent company being liable.      A company can fail but the name can continue with a new company.

jimjames

6022tivo said:

1k min, get paid 7% PA, paid every 6 months.
Bond paid back after 5 years. 

Or as investors in the likes of Blackmore Bond have found the interest payments can stop and there is no return of capital. Not saying it will happen but it's a distinct possibility if the team struggle in future. Bonds are the finance that is bottom of the pile for repayment.

The company has made significant losses over the last reporting periods, what makes you think that will turn around to enable repayment?

eskbanker

Definitely worth considering the possibility that investors' money could end up going for a Stroll (or two)....

6022tivo

jimjames said:

6022tivo said:

1k min, get paid 7% PA, paid every 6 months.
Bond paid back after 5 years. 

Or as investors in the likes of Blackmore Bond have found the interest payments can stop and there is no return of capital. Not saying it will happen but it's a distinct possibility if the team struggle in future. Bonds are the finance that is bottom of the pile for repayment.

The company has made significant losses over the last reporting periods, what makes you think that will turn around to enable repayment?

Lots of negatives which I appreciate. 

What makes me think....

Stroll has committed to getting this team and brand to the top. 
He hasn't failed at much if anything in business yet. 
He is a billionaire with a dream. I like that. 

AlexSJ1988

I personally don't think it's work the risk, there is no reason why they wouldn't struggle in the future. Depends how much money you would want to put into it relative to your income. 

eskbanker

6022tivo said:

Stroll has committed to getting this team and brand to the top. 
He hasn't failed at much if anything in business yet. 
He is a billionaire with a dream. I like that. 

You could have made the same sort of claims about Branson a while back, but his airline has struggled to stay afloat and numerous other ventures have flopped....

jimjames

6022tivo said:

jimjames said:

6022tivo said:

1k min, get paid 7% PA, paid every 6 months.
Bond paid back after 5 years. 

Or as investors in the likes of Blackmore Bond have found the interest payments can stop and there is no return of capital. Not saying it will happen but it's a distinct possibility if the team struggle in future. Bonds are the finance that is bottom of the pile for repayment.

The company has made significant losses over the last reporting periods, what makes you think that will turn around to enable repayment?

Lots of negatives which I appreciate. 

He is a billionaire with a dream. I like that. 

If he's a billionaire why does he need to raise a few million by selling bonds? 

Ignoring the negatives, what exactly is the positive aspect of it other than the headline rate?