FORUMula1.com - F1 Forum

[racechick]

Bernie should be tried for treason if the British GP doesn't go ahead.

[Juliet P]

Bernie should be tried for treason if the British GP doesn't go ahead.

And hung, drawn and quartered!! By Max!

[7UpJordan]

Bernie should be tried for treason if the British GP doesn't go ahead.

And hung, drawn and quartered!! By Max!

We all know what Max's preferred method of "punishment is".

... cue DD.

[darwin dali]

Bernie should be tried for treason if the British GP doesn't go ahead.

And hung, drawn and quartered!! By Max!

We all know what Max's preferred method of "punishment is".

... cue DD.

[7UpJordan]

Bernie should be tried for treason if the British GP doesn't go ahead.

And hung, drawn and quartered!! By Max!

We all know what Max's preferred method of "punishment is".

... cue DD.

Spot on.

[McLaren Fan]

I read today they are looking for £135 million ($216 million). So, basically, it seems as though they've managed to raise virtually nothing over the past year or more.

[scotty]

Donington unveils funding plans

Wednesday, October 14th 2009, 09:47 GMT

Donington Park has launched the financial scheme which it intends to fund much of the massive revamp it is carrying out in preparation for hosting the British Grand Prix.

The Leicestershire circuit has secured the rights to hold the race for 17 years from 2010, but must first complete a comprehensive rebuild of its facilities.

"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 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."

Can anyone translate some of the business language for me? Are they selling some form of shares here?

[Tony_sa]

they definitively selling shares which is a perfect way to raise funds. it dependes what exactly preference shares really mean. Maybe it means you will be allowed free for life... who knows ?

[Frosty]

Donington unveils funding plans

Wednesday, October 14th 2009, 09:47 GMT

Donington Park has launched the financial scheme which it intends to fund much of the massive revamp it is carrying out in preparation for hosting the British Grand Prix.

The Leicestershire circuit has secured the rights to hold the race for 17 years from 2010, but must first complete a comprehensive rebuild of its facilities.

"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 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."

Can anyone translate some of the business language for me? Are they selling some form of shares here?

Basically they have no money and they need £135 million of high risk investment in the next 2 weeks.

[Juliet P]

Notes aren't shares. Notes are debt. The fact that they are 'due' 2016 indicates that they will be repaid. But it is 'senior' debt - i.e. it would have priority in repayment over other types of debt in the event of insolvency. But the debt is being sold at a discount, so they won't raise the entire £135M. So, for example, if they are selling notes of £100k each, the person who is buying that note will pay less than 100k - perhaps 100k minus 5% (the 'discount' rate) i.e. 95k.

It looks like they're also issuing shares at the same time. Preference shares generally means that they receive more dividend (sometimes a guaranteed dividend) in exchange for having less say in the running of the business. Preference shares generally carry less or no voting rights in comparison to ordinary shares.

But what they're also saying is that anyone who buys some of the 'notes' or debt, can prescribe to a warrant for the shares at no additional cost. This is where my knowledge starts to get patchy, but from memory, a warrant is a right to buy shares. So basically, it looks like they are raising (repayable) debt, and sweetening the deal by offering an equity stake (shares) on top.

It remains to be seen whether, even with a high risk - high return on investment deal like this, they can get enough interested investors on board to cover the full amount.

Juliet

[7UpJordan]

Maybe Donington could always go and steal a Securicor van.

[Gaz]

Notes aren't shares. Notes are debt. The fact that they are 'due' 2016 indicates that they will be repaid. But it is 'senior' debt - i.e. it would have priority in repayment over other types of debt in the event of insolvency. But the debt is being sold at a discount, so they won't raise the entire £135M. So, for example, if they are selling notes of £100k each, the person who is buying that note will pay less than 100k - perhaps 100k minus 5% (the 'discount' rate) i.e. 95k.

It looks like they're also issuing shares at the same time. Preference shares generally means that they receive more dividend (sometimes a guaranteed dividend) in exchange for having less say in the running of the business. Preference shares generally carry less or no voting rights in comparison to ordinary shares.

But what they're also saying is that anyone who buys some of the 'notes' or debt, can prescribe to a warrant for the shares at no additional cost. This is where my knowledge starts to get patchy, but from memory, a warrant is a right to buy shares. So basically, it looks like they are raising (repayable) debt, and sweetening the deal by offering an equity stake (shares) on top.

It remains to be seen whether, even with a high risk - high return on investment deal like this, they can get enough interested investors on board to cover the full amount.

Juliet

Nice,

So you'd say from that they are pretty desperate right?

[Juliet P]

Notes aren't shares. Notes are debt. The fact that they are 'due' 2016 indicates that they will be repaid. But it is 'senior' debt - i.e. it would have priority in repayment over other types of debt in the event of insolvency. But the debt is being sold at a discount, so they won't raise the entire £135M. So, for example, if they are selling notes of £100k each, the person who is buying that note will pay less than 100k - perhaps 100k minus 5% (the 'discount' rate) i.e. 95k.

It looks like they're also issuing shares at the same time. Preference shares generally means that they receive more dividend (sometimes a guaranteed dividend) in exchange for having less say in the running of the business. Preference shares generally carry less or no voting rights in comparison to ordinary shares.

But what they're also saying is that anyone who buys some of the 'notes' or debt, can prescribe to a warrant for the shares at no additional cost. This is where my knowledge starts to get patchy, but from memory, a warrant is a right to buy shares. So basically, it looks like they are raising (repayable) debt, and sweetening the deal by offering an equity stake (shares) on top.

It remains to be seen whether, even with a high risk - high return on investment deal like this, they can get enough interested investors on board to cover the full amount.

Juliet

Nice,

So you'd say from that they are pretty desperate right?

Let's just say that there's no way this would be part of plans A, B, C, D, E or even F of raising this money. They're waaaaay down the alphabet...

[7UpJordan]

Let's just say that there's no way this would be part of plans A, B, C, D, E or even F of raising this money. They're waaaaay down the alphabet...

Maybe they've gone beyond Z and into the extra letters in the German alphabets so they probably now have plans Ä, Ö, Ü and ß.

[hamilton08]

Let's just say that there's no way this would be part of plans A, B, C, D, E or even F of raising this money. They're waaaaay down the alphabet...

Maybe they've gone beyond Z and into the extra letters in the German alphabets so they probably now have plans Ä, Ö, Ü and ß.

Plan Z I Love Plan Z