Williams loans brought £28m into company

The Williams Formula 1 team has revealed that the loan arrangements it refinanced in April brought £28m into the company, with part due to be repaid by April 2022 and the rest over a longer timeframe.

Williams loans brought £28m into company

As reported at the time the loans involve Michael Latifi, father of Williams driver Nicholas, as well as banking group HSBC.

The newly-released Williams Grand Prix Holdings plc annual report for 2019 contains details of the refinancing, despite it occurring after the reporting period.

The new arrangements replace loans originally agreed originally with HSBC in 2015, and which were paid off as part of the refinancing.

Williams says the change was necessary after the sale of its Advanced Engineering division in December.

There are two distinct elements, with one involving the land, factory and other assets in Grove, and the second over 100 heritage cars that span the years 1978 to 2019.

The team says that "the new financing arrangements retain long-standing banking partners HSBC in combination with new financing partners. The total funds provided to the group under this new arrangement is $45m.

"$25m has been received and secured against the group's land, building, plant and machinery, repayable in full in April 2022. Interest of 5% is payable annually and further interest of 5% per annum is rolled up to be repaid in April 2022.

"A further $20m has been received secured against the group's heritage assets. Interest of 5% is payable annually commencing from April 2020 whilst the principal of the loan will be repaid by equal annual instalments over a 5-year period ending in 2026."

Read Also:

Although the two loans total $45m, after costs and the repayment of the original 2015 HSBC loans that actually translates into an injection of the sterling equivalent of around $35m.

"The total amount received by the group in pound sterling, net of any charges and repayment of amounts owing to HSBC, is £28m."

Williams announced on Friday that it is undertaking a strategic review that could lead to a sale of the entire company, and the report makes it clear that both loans will be "repaid promptly upon proceeds of any assets the lending is secured against".

Williams CEO Mike O'Driscoll is upbeat about the load arrangements, noting: "Overall this represents an effective use of the group's assets and provides us with the financial reserves required to fund the team during the current uncertain environment."

The report also contains some information about arrangements with former title partner ROKiT.

The team notes: "At the balance sheet date [December 31st] an amount of $1m was owed by ROKiT and carried within trade debtors relating to the 2019 season.

"There is an additional £9m within both trade debtors and deferred income at 31 December 2019 relating to ROKiT sponsorship of the 2020 season."

shares
comments
Mercedes opposes F1 reverse grid qualifying race plan
Previous article

Mercedes opposes F1 reverse grid qualifying race plan

Next article

Who could replace Ricciardo at Renault?

Who could replace Ricciardo at Renault?
Why Mercedes believes it can make the step F1 needs to fight Red Bull Prime

Why Mercedes believes it can make the step F1 needs to fight Red Bull

The 2022 Formula 1 season was Mercedes' leanest for a decade, achieving just a solitary pole and grand prix win. Yet the team is confident it has got the tools it needs to cast that disappointment aside and return to the front of the field again next year.

How BRM's one-off F1 double defied its rollercoaster history Prime

How BRM's one-off F1 double defied its rollercoaster history

It’s 60 years since BRM achieved its goal and Graham Hill led the team to a world title double. But that was just part of the remarkable story of a unique team that at times overstretched its resources and had its fair share of disappointments.

Formula 1
Dec 8, 2022
The bold F1 DRS experiment that could end the debate forever Prime

The bold F1 DRS experiment that could end the debate forever

OPINION: The effectiveness of DRS in Formula 1 remains a topic of debate as the winter break gives a chance for reflection on the racing we saw in 2022. For all of its detractors, perhaps an experiment where DRS is cast aside and the impact this has on racing is in order to truly understand its merits in modern F1.

Formula 1
Dec 8, 2022
The sliding doors moment that saved Red Bull and Porsche Prime

The sliding doors moment that saved Red Bull and Porsche

OPINION: Everything looked set for Red Bull and Porsche to join forces for the 2026 season, before the marriage between both parties was called off. While at the time it looked like a major coup for Formula 1 in gaining both VW Group powerhouses Audi and Porsche for 2026, Red Bull and Porsche have really been spared a potentially fractious relationship.

Formula 1
Dec 7, 2022
How Tyrrell’s post-Stewart era descended into a fight to survive Prime

How Tyrrell’s post-Stewart era descended into a fight to survive

Glory days for Tyrrell became increasingly infrequent
 after Jackie Stewart’s retirement. But in the latest instalment of his history of the team for Autosport's sister title GP Racing, 
MAURICE HAMILTON recalls how Ken Tyrrell’s plucky and defiantly small team stayed bold enough to innovate – springing a surprise with F1’s first six-wheeled car

Formula 1
Dec 6, 2022
How departing F1 boss Brawn views F1’s new rules - and the future Prime

How departing F1 boss Brawn views F1’s new rules - and the future

Multiple-title-winning designer and team boss Ross Brawn is finally leaving Formula 1 after nearly 50 years in motorsport. But he still has plenty of insights on what’s working and what comes next, as he revealed to Motorsport.com in a far-reaching exclusive interview in Abu Dhabi.

Formula 1
Dec 2, 2022
The key F1 management call Ferrari must make to avoid more defeat Prime

The key F1 management call Ferrari must make to avoid more defeat

OPINION: Mattia Binotto’s departure from Ferrari will naturally bring a range of changes across the Formula 1 team. But how the changes shape up and the impact they could have is set to be dictated by a key direction Ferrari’s top dogs will need to pick

Formula 1
Nov 30, 2022
The difference between Mercedes’ stumble and the fall of F1 giants Prime

The difference between Mercedes’ stumble and the fall of F1 giants

OPINION: Mercedes endured its worst season of the hybrid Formula 1 era, but was mercifully spared its first winless campaign in over a decade late on. It has owned up to the mistakes it made which led to its troubled W13. And while its task to return to title-challenging contention is not small, its 2022 season seems more like a blip than the beginning of a downward spiral.

Formula 1
Nov 29, 2022