McLaren Group Limited’s Comprehensive Refinancing

McLaren Group Limited's Comprehensive Refinancing

In UK Ashurst, Kirkland & Ellis, Latham & Watkins, advised on the matter.

Ashurst advised McLaren Group with a team including Rob Aird (Corporate M&A), Karen Davies (Corporate M&A), Tim Rennie (Finance).

Kirkland & Ellis advised Ares Management Corporation, Public Investment Fund with a team including Matthew Elliott (Corporate M&A), Jacob Traff (Corporate M&A), Matthew Merkle (Equity Capital Markets).

Latham & Watkins advised Goldman Sachs, HSBC with a team including Brett Cassidy (Debt Capital Markets), Chris Horton (Equity Capital Markets), Sanjev Warna-kula-suriya (Equity Capital Markets), Nicola Higgs (Finance), Rob Moulton (Finance), Mohamed Nurmohamed (Finance).

The comprehensive refinancing, including a £550m equity investment, new high yield bond issuance, and the refinancing of its existing revolving credit facilities, will cumulatively strengthen the company’s capital structure to support its long-term growth plans.

Ares Management Corporation (“Ares”) on the investment, alongside Public Investment Fund (“PIF”), of £400 million in McLaren Group Limited in the form of Preference Shares and equity Warrants. The transaction supports the company’s growth plans as a global luxury supercar and elite motorsport business and allows for the right-sizing of company’s capital structure.

McLaren Group Limited also raised US$620 million of Senior Secured Notes from institutional investors.

McLaren Group is a British-based, globally renowned luxury automotive, motorsport and technology company. The McLaren Group has more than 3,000 employees and is globally headquartered at the iconic McLaren Technology Centre in Woking, Surrey, England.

Ashurst also advised on the sale of the McLaren Applied Limited business to Greybull Capital, the investment made into McLaren Racing by MSP Sports Capital and other third party investors in December 2020, and the recently announced sale and leaseback of its iconic headquarters, the McLaren Campus which includes the McLaren Technology Centre and McLaren Production Centre where its supercars are hand-built.

The Ashurst team was led by corporate and McLaren relationship partner Rob Aird (Picture), with corporate and fellow McLaren relationship partner Karen Davies, high yield partner Anna-Marie Slot and finance partner Tim Rennie. They were supported by corporate senior associates Molly Woods, Louise Chan, and Shaz Ali, high yield counsel Natalia Sokolova and senior associate Eileen Kelly, and finance senior associate Sebastian Brignell.

The Kirkland team was led out of London by corporate partners Matthew Elliott and Jacob Traff and out of the United States by debt finance partners Dave Nemecek and Tom Dobleman. The team also consisted of capital markets partners Pippa Bond and Matthew Merkle.

The cross-practice Latham team advising the banks as initial purchasers of senior secured notes was led by London partner Brett Cassidy with associates Patrick Kwak and Kelsey Glover; as placement agents of senior preference shares & warrants and of convertible preference shares by London partners Sanjev Warna-kula-suriya and Chris Horton, with associates Chris Armstrong and Koushik Prasad; and as the arrangers and lenders in relation to the revolving credit facility by London partner Mo Nurmohamed with associates Robert Davidson, Philipp Hagenbuch, and Alexander Law. Regulatory advice was provided by London financial regulation partners Rob Moulton and Nicola Higgs.

Involved fees earner: Rob Aird – Ashurst; Shaz Ali – Ashurst; Sebastian Brignell – Ashurst; Louise Chan – Ashurst; Karen Davies – Ashurst; Eileen Kelly – Ashurst; Tim Rennie – Ashurst; Anna-Marie Slot – Ashurst; Natalia Sokolova – Ashurst; Molly Woods – Ashurst; Philippa Bond – Kirkland & Ellis; Thomas Dobleman – Kirkland & Ellis; Matthew Elliott – Kirkland & Ellis; Matthew Merkle – Kirkland & Ellis; David Nemecek – Kirkland & Ellis; Jacob Traff – Kirkland & Ellis; Brett Cassidy – Latham & Watkins; Robert Davidson – Latham & Watkins; Kelsey Glover – Latham & Watkins; Philipp Hagenbuch – Latham & Watkins; Nicola Higgs – Latham & Watkins; Chris Horton – Latham & Watkins; Patrick Kwak – Latham & Watkins; Alexander Law – Latham & Watkins; Rob Moulton – Latham & Watkins; Mohamed Nurmohamed – Latham & Watkins; Koushik Prasad – Latham & Watkins; Sanjev Warna-kula-suriya – Latham & Watkins;

Law Firms: Ashurst; Kirkland & Ellis; Latham & Watkins;

Clients: Ares Management Corporation; Goldman Sachs; HSBC; McLaren Group; Public Investment Fund;

Author: Giulia Di Palma

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