Donington talks over £135m bond scheme for British grand prix Simon Gillett, chief executive of UK racing circuit Donington Park, yesterday revealed he is in negotiations with CitiBank about a £135 million bond issue scheme to finance the £50 million revamp required to host the British grand prix.
On Monday, Bernie Ecclestone gave Donington two weeks to provide the financial guarantees to prove it is capable of hosting next year's race.
An earlier Goldman Sachs fundraising round was scrapped in April. The bonds, which will mature in 2016, will pay an annual yield of 15 per cent. It is understood that it will be clear by next week whether the scheme is likely to raise the necessary funds.
"We have made great strides in recent weeks and greatly appreciate the additional time allowed to us to finalize the information for public distribution in what has been a much more difficult than anticipated economic climate," Gillett said earlier this week, as quoted by the Guardian.
"We appreciate the British public's growing frustration with regard to uncertainty that has been cast over the country's largest and most successful motorsport event, but remain committed to delivering on the promises that we made at the start of this process and have the interests of the sport and its fans at heart."
Another plan to raise cash by selling long-term debentures has been put on hold until the autumn.
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