Donington launch financial plans
Donington has unveiled its financial plans to redevelop the circuit
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By Matthew Champion. |  |
Thursday, 15, Oct 2009 10:10
By Adam Leveridge.
Donington Park bosses have launched a financial scheme which they hope will fund the redevelopment of the Leicestershire circuit ready to host the 2010 British grand prix.
The circuit was given the rights to host the British round of the formula one world championship for the next 17 years from 2010, although a massive revamp is needed to bring the track and its facilities up to F1 standards.
"Donington Holdings plc, the parent company of Donington Ventures Leisure Limited that operates the Donington Park motor racing circuit, has launched an offering of £135,000,000 aggregate principal amount of first priority senior secured notes due 2016," said a statement from the circuit.
"The notes are expected to be issued at a discount to the principal amount thereof. Purchasers of notes will also be able to subscribe for warrants for no additional consideration."
The statement added: "The net proceeds of the offering of notes... will be used in large part to fund the redevelopment of Donington Park in preparation for the hosting of the F1 British grand prix in 2010."
The announcement comes just days after circuit boss Simon Gillett welcomed what he perceived to be a two-week extension of the time allowed to bring the venue up to F1 specifications ahead of next season.
However, F1 supremo Bernie Ecclestone later stated he had entered no such agreement and that the additional time was part of the initial contract, which is on the verge of being breached if the circuit remains sub-standard by the end of the month.