McLaren borrows EUR48m from HSBC

(GMM) McLaren has reportedly borrowed nearly EUR50 million to build its new production car factory and buy back the formula one team from Mercedes.

The Independent newspaper said it the first debt the Woking based company has taken on since 2005.

A spokesman said the HSBC loan will also "provide head room on its facilities to assist in the buyback of the remaining Daimler shares by the end of 2011".

McLaren's intellectual property, cash in the bank, and its land and buildings at Woking, are providing the security for the loan, according to the report.

The British company is reportedly also offering 48 per cent of the new Ron Dennis-headed road car business McLaren Automotive to private investors.