McLaren’s effort’s to raise £250m of emergency cash have raised complaints from existing bond holders, who say they previously invested capital in the company guaranteed by the very same collection of Mclaren Heritage cars it is offering as collateral to new lenders.
Mclaren’s have also offered to mortgage its Surrey headquarters.
Like many businesses, they need to raise capital in order to survive the coronavirus-related interruption to trading.
The have lost income they would normally receive from Formula One and retail car sales, has left them desperate for cash.
Back in 2017 investors bought £525m of Bonds in McLaren’s to buy out a stake owned by the group’s former chairman Ron Dennis. These investors are concerned that the collection of Historic Formula 1 cars which JP Morgan is offering up as collateral against the new £250m bond issue are already spoken for against that initial debt.
Now a group of these investors have therefore hired US law firm Paul Hastings to protect their interest. On Wednesday it’s being reported by Financial Times that the group sent a letter to the company’s management to outline their opposition to the new bond issue.
Sky News reported this month that McLaren had resorted to this expensive new round of fundraising because the UK government rejected its request for a £150m loan. The group’s shareholders, which include Bahrain’s sovereign wealth fund Mumtalakat, provided £300m of fresh equity to the business in March.
Mclaren have yet to respond to our request for more details of the funding and JPMorgan declined to comment