Donington has recently signed a deal with Bernie Ecclestone's Formula One Management for the hosting of the British Grand Prix for the upcoming 17 years, but have missed the October 12th deadline imposed by the F1 supremo to secure the development of the track. Consequently, they have been given 2 weeks to solve that problem, or else F1 will move back to Silverstone for the 2010 British GP.
According to the latest statement issued by Donington Holdings Plc, the plan to secure the funds for bringing the Donington track to Formula One standards is based on first priority senior secured notes.
“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 the statement.
“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 offering of the Notes and the Warrants is being made solely by means of a confidential offering memorandum.”
“The net proceeds of the offering of Notes, together with a concurrent offering of preference shares, will be used in large part to fund the redevelopment of Donington Park in preparation for the hosting of the Formula One British Grand Prix in 2010,” added the statement.