Jaguar LandRover - comment

JLR is using $500m of their £4bn cash balances to tender for its 2026, 2028 and 2029 bonds, with priority for their shorter-dated bonds. JLR has always held a large cash balance to give confidence in its ability to fund the high expected CAPEX of its transition to electrification. This paydown, worth just over 1/4 of EBITDA, is small in the context of their £6.5bn Gross debt but is probably a reflection of recent quarters' stronger positive cash flow as JLR converts order book into sales. 

In light of their trading levels, and the Company’s stated aim of Net Debt zero by FY25, we are likely to cease following the name in the next quarter.