Photo: McLaren
The auto industry is in a bad place right now, with demand for new cars dwindling down close to zero and production lines shut down for weeks in a row, in the midst of the ongoing international health crisis. But things aren’t going to get better anytime soon.
McLaren Group is bracing for the worst to come and is looking to secure extra funding to deal with the economic impact of the crisis, by borrowing against two of its most prized assets. Sky News reports that the Group is looking to mortgage its spectacular headquarters in Woking, Surrey, in England and its historic car collection.
Unnamed sources reveal for the publication that the Group is looking to raise anywhere between £250 million and £275 million ($302 million and $333 million). The money could be raised “in the form of new bonds, with funding secured from existing or new bondholders,” the report notes. The debt would be paid off “at the earliest opportunity,” according to an insider.
The efforts to secure the extra funds were accelerated by the government’s refusal to grant the Group a £150 million ($181 million) loan, on the grounds that it had not yet exhausted all alternative sources of financing.
The car collection alone is worth an estimated £250 million ($302 million), with some items valued at tens of millions of pounds each. The Woking HQ, meanwhile, is worth in excess of £200 million ($242 million).
“Like many other British businesses McLaren has been severely affected by the current pandemic and we are therefore exploring a variety of different funding options to help navigate these short-term business interruptions,” a spokesperson for McLaren Group tells Sky News of the latest report.
The Group employs over 4,000 people, many of whom have been furloughed. In March, McLaren Group received a £300 million ($363 million) capital injection from shareholders.
Unnamed sources reveal for the publication that the Group is looking to raise anywhere between £250 million and £275 million ($302 million and $333 million). The money could be raised “in the form of new bonds, with funding secured from existing or new bondholders,” the report notes. The debt would be paid off “at the earliest opportunity,” according to an insider.
The efforts to secure the extra funds were accelerated by the government’s refusal to grant the Group a £150 million ($181 million) loan, on the grounds that it had not yet exhausted all alternative sources of financing.
The car collection alone is worth an estimated £250 million ($302 million), with some items valued at tens of millions of pounds each. The Woking HQ, meanwhile, is worth in excess of £200 million ($242 million).
“Like many other British businesses McLaren has been severely affected by the current pandemic and we are therefore exploring a variety of different funding options to help navigate these short-term business interruptions,” a spokesperson for McLaren Group tells Sky News of the latest report.
The Group employs over 4,000 people, many of whom have been furloughed. In March, McLaren Group received a £300 million ($363 million) capital injection from shareholders.
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