McLaren turns to bond issue to finance buyout of former CEO's shares and restructuring


Ron Dennis has now left the company (Source: McLaren)

Carmaker McLaren plans to raise £500m in a bond issue to finance the buyout of former chief executive Ron Dennis's shares and the restructuring of the business.

Following Dennis's decision to step down in the face of growing internal pressure at the end of last year, McLaren has acquired his holdings in the business and united its technology and car arms into one group.

The buyout, valued at £275m, marks an end to Dennis's 37 year career in the driving seat of McLaren.

Read more: In pictures: the sports car for bargain-hunters that's less than £200,000

To fund the acquisition, the company has hired JP Morgan to lead a debt capital markets financing push and reports have suggested the total amount raised could reach £500m.

The money will also contribute to a potential stock market float, which McLaren is eyeing within the next few years.