Donington seeking investors now

It seems the dodgy debenture program may have failed Simon Gillett, Donington Park boss, as Citigroup has stared an all out investor search Thursday. Reuters reports that the Buyers of the bond will receive annual interest of 15 per cent as well as warrants over a future share issue.


All of you potential investors out there get your business book out but be warned that rating agency Standard & Poor’s (S&P) assigned the issuer, Donington Holdings, a CCC+ rating. Just for us novices, that’s seven grades lower than standard investment ratings.

“The ratings on Donington reflect our view of the significant construction and marketing risks relating to the upgrade of Donington’s racetrack and development of hospitality facilities,” said S&P analyst Silvia Ortolan.

We reported that F1 commercial boss Bernie Ecclestone had given Gillett two more weeks as a deadline after the Donington boss failed to meet last weekends previous deadline. Ecclestone was quick to clarify saying that it was not an extension, as reported, but it is the time allotted to resolve a default position contractually. Having seen many of those contracts in my day, I am inclined to believe Ecclestone as a 14 day resolution period is fairly standard in contract verbiage these days.

Can Citigroup find investors in this economy who are looking for a low-rated bond in a high-yield market? I guess we have about 10 days to find out.

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