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Wasps statement: The latest delay to stadium bondholders repayment

(Photo by Ryan Pierse/Getty Images)

Wasps’ worrying delay in repaying their bondholders has taken another twist following the latest statement from the club admitting that they still haven’t been able to agree to final terms for the refinancing and redemption of the bonds. The Gallagher Premiership club should have made the repayment in May only for Wasps to announce that the repayment date was pushed back until the end of June to allow additional time to finalise terms with HSBC to refinance that bond debt.

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A statement at the time quoted Wasps CEO Stephen Vaughan: “We thank bondholders for their continued support and look forward to updating them further in due course.” However, a deal still hasn’t been struck regarding refinancing, adding to worries about the current financial position of the club.

It was shortly after acquiring a 250-year lease on the Coventry Building Society Arena, which was then known as the Ricoh Arena, that Wasps launched a bond scheme in April 2015. Bondholders invested at least £2,000 each and most of the £35million raised was used to pay off previous debts, including a £13.4m loan from Coventry City Council and £10m of loans from Wasps owner Derek Richardson.

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However, the Arena business has struggled financially and the latest set of filed accounts from November 2021 showed losses of about £18.5m over the past two years and net liabilities of £54.7m. 

Aside from leaving bondholders frustrated that they haven’t been able to get their investment back, Wasps encountered heavy criticism last month after it emerged they had asked the West Midlands Combined Authority (WMCA) for £13m of public money as the financial strain builds on their stadium business.

The previous update from Wasps on June 30 claimed that the bond refinancing was subject to final due diligence and documentation and the expectation was that the deal would be complete by August 12. However, that deadline is now set to pass without a deal being struck, according to the latest update from the financially troubled club. 

Here is the Wasps statement in full as published by the Coventry Telegraph: “Wasps Finance plc provides an update on the refinancing and redemption of the issuer’s £35,000,000 6.50 per cent secured bonds due May 13, 2022 (ISIN: XS1221940510, Common Code: 122194051) (the “Bonds”).

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“Further to the announcement on June 30, 2022, the issuer has not yet been able to agree on final terms for refinancing and as such will not complete the refinancing and redemption of the bonds within the previously proposed timeframe.

“In parallel with the refinancing discussions with HSBC UK Bank plc as senior debt provider referred in previous announcements, the issuer has, in recent months, been pursuing different refinancing options in addition to making progress with a number of key initiatives to increase both the profitability and asset value of the group.

“The board, therefore, considers the appropriate course of action is to seek an extension of the bonds to allow time for the completion of the refinancing. The issuer is now working on the proposed bond terms to be amended and will formally launch a consent solicitation process in August once the proposed terms have been finalised.

“In the meantime, the issuer will continue to seek to have the bonds reinstated on the London Stock Exchange. This may need the approval of the consent solicitation prior to being able to do so and the issuer is in discussions with the UK Listing Authority in relation to the exact steps that will be required for re-listing and subsequent re-admission to the London Stock Exchange.

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“Bondholders will continue to receive interest for the period from May 13, 2022, on a half-yearly basis until the date of redemption.”

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J
JW 6 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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