Have no idea.
There have been redundancies .
Fourth day of strike action for Bullivant journalists
Journalists are again out on the picket line today as more support is offered to the strikers.
Wasps downward spiral... (19 Viewers)
- Thread starter CCFC54321
- Start date
There have been redundancies .
Kneeza
Well-Known Member
Quins also lost two front-rowers in the pre-match, which certainly didn't help their set-piece - which was very, very poor in the event.
The Premiership is totally un-callable for so many reasons since the restart.
fernandopartridge
Well-Known Member
Wasps have made an announcement (EXCLUSIVE with the Wallygraph Bobby Bridge) about new 'long term' deals for BCD sporting events. That they're building a sports bar (pretty clear that they'll be using that grant money for something more than was advertised).
Strangely they think the BCD events will help them sell rooms at the hotel, aside from the competitors who is going to be staying there?
Strangely they think the BCD events will help them sell rooms at the hotel, aside from the competitors who is going to be staying there?
TomRad85
Well-Known Member
Can't even bear reading about them or the Ricoh anymore, makes me sick. Next thing I wanna read is Wasps go bust or Ricoh burns to the ground (with no one in it of course.)
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superskyblue
Well-Known Member
People who want to watch the game from the hotel room maybe?
fernandopartridge
Well-Known Member
What on telly? It's not sports using the pitch, the article suggest darts and snooker.
superskyblue
Well-Known Member
Ah didn't get that bit. If they are hosting tournaments then the players & media will likely have to go into a bubble for the duration, presumably at the hotel on site. So I guess that?
Liquid Gold
Well-Known Member
I love that Bobby Bridge article "It's not all doom and gloom". Bobby, you've just presented everything as perfect for years now it's just not all doom and gloom? That guy is such a fraud, imagine training to be a journalist and ending up being bought off by a shirt.
fernandopartridge
Well-Known Member
Are they opening one at the Ricoh?
Nick
Administrator
I'm sure the council would help them smuggle the women in from Romania too.
Liquid Gold
Well-Known Member
It'll be a specialist wine lodge where you drink wine from your mates arse crack.
duffer
Well-Known Member
On this at least, I think they’ve misunderstood that not everything has to be like it was in Hillfields...
Terry Gibson's perm
Well-Known Member
Another place to avoid being built by Wasps with other people’s money. I think it should be hooters and then make arsehole Bridge put a positive spin on that. The negative must be the moving of their club shop to get this new thing in but it will end up as new Council sponsored superstore opens at the ricoh bringing with it a job.
shepardo01
Well-Known Member
Hopefully they will be very disappointed in their next game.
Read elsewhere that Exeter had already declared it a dead rubber due to their European involvement?
We can't have them getting to a final... or heavens forbid, winning it!!
Mind you, they've beaten pretty much everyone since their restart!
jordan210
Well-Known Member
Few bits of info from London stock exchange notice.
Results for the Wasps Group summarised below reflect the impact of COVID-19 on the Wasps Group, combined with the prior year cash injection of £12.5 million of funds received by Wasps Holdings as part of the Premier Rugby Limited commercial deal with CVC Capital Partners and a £4.1 million increase in the valuation of the "P-Shares" that Wasps Holdings holds in Premier Rugby Limited:
· as at 30 June 2020, full year revenue decreased year-on-year to £22.2 million, compared to £34.5 million for the year to 30 June 2019 (Wasps Holdings: £9.9 million (2019: £14.8 million); ACL: £3.0 million (2019: £5.1 million); and IEC Experience Limited: £9.3 million ( 2019: £14.6 million));
· operating loss of £8.75 million, compared to an operating profit of £8.4 million in 2019;
· EBITDA loss (operating loss before taxation, finance costs, depreciation and amortisation) of £6.5 million, compared to a profit of £10.7 million in 2019 (a decrease of £17.1 million from the financial year ended 30 June 2019);
· valuation of the Ricoh Arena at £51 million and P-Shares at £13.9 million, unchanged from the 2019 valuations; and
· consolidated senior net debt at £37.3 million (mainly owed to Wasps Finance), compared to £31.4 million in 2019
Stephen Vaughan, Chief Executive Officer of Wasps Holdings Limited, commented:
"The Wasps Group had a good start to the year up until the impact of Covid-19 and the temporary closure of the Ricoh Arena in line with Government health restrictions from 21 March this year. Since then, we have taken a number of mitigating actions to preserve cash, reduce costs and maintain liquidity to limit the impact on the business. We are now asking bondholders to support the amendment to certain leverage and cashflow covenants attached to the Bond in light of the ongoing restrictions. The approval of these Proposals will also give the Wasps Group the flexibility to access additional liquidity, if required.
"We continue to tightly manage our costs and have a comprehensive reopening plan for when restrictions are lifted with extensive COVID-secure operating protocols. The Wasps Group fully intends to continue to meet all of its obligations under the Bonds. We firmly believe that the Proposals are in the best interests of all of our stakeholders, and will help the Wasps Group to emerge in a more robust financial position."
RATIONALE FOR THE PROPOSALS
The Issuer and the Guarantors are making the Consent Solicitation for the following reasons:
· to amend the financial covenants under the Bonds to take into account the significant impact of COVID-19 on the Wasps Group and the on-going financial impact of operating in a COVID-19 environment;
· to enable the Wasps Group to access additional liquidity that is required to allow it to continue to trade as a going concern while the Government's public health restrictions to control COVID-19 remain in place;
· to enable the Wasps Group to improve its financial strength through the acceleration and implementation of its development plan for the Ricoh Arena and surrounding land and facilities; and
· to facilitate the Wasps Group's plans to refinance the Bonds on or by their scheduled maturity date in May 2022,
as further detailed in the Consent Solicitation Memorandum.
The proposals that the Issuer and the Guarantors are inviting Bondholders to approve are as follows (together, the "Proposals"):
(a) to amend:
(i) Condition (4)(d) (Interest Service Reserve Account and Approved Investments) to:
(A) allow the Issuer to withdraw monies from the Interest Service Reserve Account on any Interest Payment Date falling on or after 13 November 2020 if the amount standing to the credit of the Interest Service Reserve Account exceeds the Required Account Balance and to amend the definition of the Required Account Balance such that it will be zero on or after 13 November 2020;
(B) remove the additional requirement for the Consolidated EBITDA to Consolidated Finance Costs as at and for the 12 month period ending the most recent Reporting Date to be at least 1.4 : 1.0 for the Issuer to be able to withdraw such amounts; and
(C) remove the reference to the account being closed at the option of the Issuer once the Release Conditions have been met;
(ii) Condition 4(e) (Financial Covenants) so that:
(A) the Asset Cover Ratio requirement set out in Condition 4(e)(i) shall be split into two parts:
(1) a "Secured Asset Cover Ratio" of at least of 1.4 : 1.0 only in respect of Consolidated Secured Senior Debt of the Wasps Group. A definition of "Consolidated Secured Senior Debt" shall be added which includes all secured Financial Indebtedness of the Wasps Group other than any future COVID Funding and any Non-Recourse Debt (each as further described below)); and
(2) a "Total Asset Cover Ratio" of at least 1.1 : 1.0 in respect of the Consolidated Total Senior Debt of the Wasps Group. A definition of "Consolidated Total Senior Debt" shall be added which includes all secured and unsecured Financial Indebtedness of the Wasps Group other than any Non-Recourse Debt;
(B) the requirement for each Guarantor and ACL2006 to maintain a minimum ratio Consolidated EBITDA to Consolidated Finance Costs in respect of any Reporting Date falling on or after 30 June 2020 is removed and shall no longer apply; and
(C) the Consolidated Senior Debt limit set out in Condition 4(e)(iii) shall be split into two separate limits:
(1) a "Consolidated Secured Senior Debt" limit of £36.5 million only in respect of Consolidated Secured Senior Debt of the Wasps Group, which includes all secured Financial Indebtedness of the Wasps Group other than any future COVID Funding and any Non-Recourse Debt; and
(2) a "Consolidated Total Senior Debt" level of £50 million in respect of Consolidated Total Senior Debt of the Wasps Group, which includes all secured and unsecured Financial Indebtedness of the Wasps Group other than Non-Recourse Debt;
(iii) Condition 6(c) (Redemption at the option of the Issuer) to allow the Issuer to redeem the Bonds at a redemption price of 100% of their principal amount in respect of any redemption at the option of the Issuer occurring at any time after the Interest Period beginning on 13 November 2020 until the scheduled final maturity date;
(iv) Condition 19 to amend the definition of "Permitted Collateral Security Interest" to permit Wasps Holdings to grant Quasi Security upon any distributions or other amounts payable to Wasps Holdings under the PRL Licensing Agreement and/or the PRL Shareholders' Agreement as part of any COVID Funding made available to the Wasps Group by Premier Rugby Limited or the Government;
(v) Condition 19 to include a definition of "Non-Recourse Debt" to permit a special purpose company that is a Subsidiary of the Issuer, each Guarantor or ACL2006 to incur non-recourse debt for the purposes of any project or development of assets owned by such Subsidiary and provided that recourse of such debt is limited to such Subsidiary and its assets (subject to certain limited, customary exceptions); and
(vi) Condition 19 such that, on and from the date on which the Amended and Restated Trust Deed is duly executed:
(A) "Account Bank", "IECE Shares", "Permitted Collateral Security Interest" (as outlined above) , "Required Account Balance", and "Shareholder Loan" are amended in the form outlined in Annex 2 to the Consent Solicitation Memorandum to align with the amendments outlined above;
(B) the definitions of "Asset Cover Ratio", "Consolidated EBITDA", "Consolidated Finance Costs" and "Consolidated Senior Debt" are deleted in their entirety to align with the amendments outlined above; and
(C) new definitions, being, "Consolidated Secured Senior Debt", "Consolidated Total Senior Debt", "COVID Funding", "Non-Recourse Debt" (as outlined above), "PRL Licensing Agreement", "PRL Shareholders' Agreement", "Secured Asset Cover Ratio" and "Total Asset Cover Ratio" are added to Condition 19 to implement the amendments outlined above; and
(b) all consequential amendments to the Transaction Documents that are necessary or desirable in the opinion of the Issuer to implement the modifications described in paragraphs (a)(i) to (vi) above,
in each case, as further described in the section of the Consent Solicitation Memorandum entitled "The Consent Solicitation - Description of the Proposals".
No consent fee will be payable in connection with the Consent Solicitation.
Results for the Wasps Group summarised below reflect the impact of COVID-19 on the Wasps Group, combined with the prior year cash injection of £12.5 million of funds received by Wasps Holdings as part of the Premier Rugby Limited commercial deal with CVC Capital Partners and a £4.1 million increase in the valuation of the "P-Shares" that Wasps Holdings holds in Premier Rugby Limited:
· as at 30 June 2020, full year revenue decreased year-on-year to £22.2 million, compared to £34.5 million for the year to 30 June 2019 (Wasps Holdings: £9.9 million (2019: £14.8 million); ACL: £3.0 million (2019: £5.1 million); and IEC Experience Limited: £9.3 million ( 2019: £14.6 million));
· operating loss of £8.75 million, compared to an operating profit of £8.4 million in 2019;
· EBITDA loss (operating loss before taxation, finance costs, depreciation and amortisation) of £6.5 million, compared to a profit of £10.7 million in 2019 (a decrease of £17.1 million from the financial year ended 30 June 2019);
· valuation of the Ricoh Arena at £51 million and P-Shares at £13.9 million, unchanged from the 2019 valuations; and
· consolidated senior net debt at £37.3 million (mainly owed to Wasps Finance), compared to £31.4 million in 2019
Stephen Vaughan, Chief Executive Officer of Wasps Holdings Limited, commented:
"The Wasps Group had a good start to the year up until the impact of Covid-19 and the temporary closure of the Ricoh Arena in line with Government health restrictions from 21 March this year. Since then, we have taken a number of mitigating actions to preserve cash, reduce costs and maintain liquidity to limit the impact on the business. We are now asking bondholders to support the amendment to certain leverage and cashflow covenants attached to the Bond in light of the ongoing restrictions. The approval of these Proposals will also give the Wasps Group the flexibility to access additional liquidity, if required.
"We continue to tightly manage our costs and have a comprehensive reopening plan for when restrictions are lifted with extensive COVID-secure operating protocols. The Wasps Group fully intends to continue to meet all of its obligations under the Bonds. We firmly believe that the Proposals are in the best interests of all of our stakeholders, and will help the Wasps Group to emerge in a more robust financial position."
RATIONALE FOR THE PROPOSALS
The Issuer and the Guarantors are making the Consent Solicitation for the following reasons:
· to amend the financial covenants under the Bonds to take into account the significant impact of COVID-19 on the Wasps Group and the on-going financial impact of operating in a COVID-19 environment;
· to enable the Wasps Group to access additional liquidity that is required to allow it to continue to trade as a going concern while the Government's public health restrictions to control COVID-19 remain in place;
· to enable the Wasps Group to improve its financial strength through the acceleration and implementation of its development plan for the Ricoh Arena and surrounding land and facilities; and
· to facilitate the Wasps Group's plans to refinance the Bonds on or by their scheduled maturity date in May 2022,
as further detailed in the Consent Solicitation Memorandum.
The proposals that the Issuer and the Guarantors are inviting Bondholders to approve are as follows (together, the "Proposals"):
(a) to amend:
(i) Condition (4)(d) (Interest Service Reserve Account and Approved Investments) to:
(A) allow the Issuer to withdraw monies from the Interest Service Reserve Account on any Interest Payment Date falling on or after 13 November 2020 if the amount standing to the credit of the Interest Service Reserve Account exceeds the Required Account Balance and to amend the definition of the Required Account Balance such that it will be zero on or after 13 November 2020;
(B) remove the additional requirement for the Consolidated EBITDA to Consolidated Finance Costs as at and for the 12 month period ending the most recent Reporting Date to be at least 1.4 : 1.0 for the Issuer to be able to withdraw such amounts; and
(C) remove the reference to the account being closed at the option of the Issuer once the Release Conditions have been met;
(ii) Condition 4(e) (Financial Covenants) so that:
(A) the Asset Cover Ratio requirement set out in Condition 4(e)(i) shall be split into two parts:
(1) a "Secured Asset Cover Ratio" of at least of 1.4 : 1.0 only in respect of Consolidated Secured Senior Debt of the Wasps Group. A definition of "Consolidated Secured Senior Debt" shall be added which includes all secured Financial Indebtedness of the Wasps Group other than any future COVID Funding and any Non-Recourse Debt (each as further described below)); and
(2) a "Total Asset Cover Ratio" of at least 1.1 : 1.0 in respect of the Consolidated Total Senior Debt of the Wasps Group. A definition of "Consolidated Total Senior Debt" shall be added which includes all secured and unsecured Financial Indebtedness of the Wasps Group other than any Non-Recourse Debt;
(B) the requirement for each Guarantor and ACL2006 to maintain a minimum ratio Consolidated EBITDA to Consolidated Finance Costs in respect of any Reporting Date falling on or after 30 June 2020 is removed and shall no longer apply; and
(C) the Consolidated Senior Debt limit set out in Condition 4(e)(iii) shall be split into two separate limits:
(1) a "Consolidated Secured Senior Debt" limit of £36.5 million only in respect of Consolidated Secured Senior Debt of the Wasps Group, which includes all secured Financial Indebtedness of the Wasps Group other than any future COVID Funding and any Non-Recourse Debt; and
(2) a "Consolidated Total Senior Debt" level of £50 million in respect of Consolidated Total Senior Debt of the Wasps Group, which includes all secured and unsecured Financial Indebtedness of the Wasps Group other than Non-Recourse Debt;
(iii) Condition 6(c) (Redemption at the option of the Issuer) to allow the Issuer to redeem the Bonds at a redemption price of 100% of their principal amount in respect of any redemption at the option of the Issuer occurring at any time after the Interest Period beginning on 13 November 2020 until the scheduled final maturity date;
(iv) Condition 19 to amend the definition of "Permitted Collateral Security Interest" to permit Wasps Holdings to grant Quasi Security upon any distributions or other amounts payable to Wasps Holdings under the PRL Licensing Agreement and/or the PRL Shareholders' Agreement as part of any COVID Funding made available to the Wasps Group by Premier Rugby Limited or the Government;
(v) Condition 19 to include a definition of "Non-Recourse Debt" to permit a special purpose company that is a Subsidiary of the Issuer, each Guarantor or ACL2006 to incur non-recourse debt for the purposes of any project or development of assets owned by such Subsidiary and provided that recourse of such debt is limited to such Subsidiary and its assets (subject to certain limited, customary exceptions); and
(vi) Condition 19 such that, on and from the date on which the Amended and Restated Trust Deed is duly executed:
(A) "Account Bank", "IECE Shares", "Permitted Collateral Security Interest" (as outlined above) , "Required Account Balance", and "Shareholder Loan" are amended in the form outlined in Annex 2 to the Consent Solicitation Memorandum to align with the amendments outlined above;
(B) the definitions of "Asset Cover Ratio", "Consolidated EBITDA", "Consolidated Finance Costs" and "Consolidated Senior Debt" are deleted in their entirety to align with the amendments outlined above; and
(C) new definitions, being, "Consolidated Secured Senior Debt", "Consolidated Total Senior Debt", "COVID Funding", "Non-Recourse Debt" (as outlined above), "PRL Licensing Agreement", "PRL Shareholders' Agreement", "Secured Asset Cover Ratio" and "Total Asset Cover Ratio" are added to Condition 19 to implement the amendments outlined above; and
(b) all consequential amendments to the Transaction Documents that are necessary or desirable in the opinion of the Issuer to implement the modifications described in paragraphs (a)(i) to (vi) above,
in each case, as further described in the section of the Consent Solicitation Memorandum entitled "The Consent Solicitation - Description of the Proposals".
No consent fee will be payable in connection with the Consent Solicitation.
shepardo01
Well-Known Member
Think the Govt changed state aid laws early on in Covid crisis.... and look who suddenly threw a load of cash in Wasps direction.....
clint van damme
Well-Known Member
Might soon find out if rumours sisu bought a stack of bonds is true or not.
fernandopartridge
Well-Known Member
Quick skim seems to suggest this reorganisation is so they can claim grants received are not paying off debt I assume.
Not sure what if any state aid exemptions exist for covid support
fernandopartridge
Well-Known Member
They can't change them unilaterally as during the transition the EU law is still in place
Nick
Administrator
Interesting how the losses are compared to the year when they had a massive CVC cash injection so they can blame Corona. As if they are making millions in profit every year until now.
Looking forward to seeing Bridge try and figure them out (or copy and paste what Wasps tell him to copy and paste)
Looking forward to seeing Bridge try and figure them out (or copy and paste what Wasps tell him to copy and paste)
chiefdave
Well-Known Member
What a surprise that this has come out a few days after the Telegraphs ‘everything is great’ articles. Whatever happened to the promised announcement of a big new tenant?
See they are charging £60 to watch the next game at the Ricoh in a bar which I think overlooks the pitch yet claim nobody will be able to view the pitch!
See they are charging £60 to watch the next game at the Ricoh in a bar which I think overlooks the pitch yet claim nobody will be able to view the pitch!
Liquid Gold
Well-Known Member
Sisu and Les Reid up to their old tricks again....
Seriously Though this is brilliant news.They wouldn’t resort to this if they had no other option and there is the possibility the bond holders say no and try and get what they can with a ricoh sale.
Seriously Though this is brilliant news.They wouldn’t resort to this if they had no other option and there is the possibility the bond holders say no and try and get what they can with a ricoh sale.
MusicDating
Euro 2016 Prediction League Champion!!
Maybe it's the official receivers. Save on the travel...
From ADVFN - must be the WASPS PR machine?
Hi All, I see this as positive for the following reasons:
1) It removes certain covenants. To be honest at this stage of the game I don't see covenants as particularly relevant. The removal of requirements to meet them allows management to focus on doing the most important things with the cash they have while effectively gaining advance permission from lenders to do this.
2) It sets the company up for further non-recourse debt raising. Here non-recourse means without recourse to the assets on which the bonds are secured (a good thing). This borrowing would represent cash inflow to the company, and may or may not relate to government provided COVID-19 financing. Government-provided financing would be likely to be relatively favourable terms (e.g. lower interest rate than the bonds). I'm not sure how certain it is that government provided cash may appear, but to set the group up to receive it without impacting bondholder security seems very sensible. Whatever the source of cash, cash inflow helps the company to manage their current situation.
3) It is paving the way for refinancing. Both potentially utilising the cash from bullet 2 above or simply in general by allowing the potential for refinancing prior to May 2022 (again a good thing).
4) Overall it demonstrates the company continues to be very professionally and competently managed.
Clearly the listed bond prices have not reflected the above interpretation (down circa 6% today) but frankly who knows what is going on with the supply and demand for these bonds. Maybe the very basic interpretation is that more debt is bad. I would say if it doesn't impact security and helps take advantage of low cost finance and manage a cash squeeze then it is very good.
Side point: In retrospect, these excellent pitch performances, which I expect we are all very much enjoying, seem to be the cumulative result of long periods of investment in players, brand, facilities etc off the pitch. People (e.g. channel 5 commentators) were saying right at the start of this year that a quiet confidence was building at the club and with hindsight we can say they were right, and they were right for real reasons. So I feel Wasps are in a great place to continue a long commercial and sporting journey.
aringadingding 
6 Oct '20 - 11:59 - 110 of 111 |
|
1) It removes certain covenants. To be honest at this stage of the game I don't see covenants as particularly relevant. The removal of requirements to meet them allows management to focus on doing the most important things with the cash they have while effectively gaining advance permission from lenders to do this.
2) It sets the company up for further non-recourse debt raising. Here non-recourse means without recourse to the assets on which the bonds are secured (a good thing). This borrowing would represent cash inflow to the company, and may or may not relate to government provided COVID-19 financing. Government-provided financing would be likely to be relatively favourable terms (e.g. lower interest rate than the bonds). I'm not sure how certain it is that government provided cash may appear, but to set the group up to receive it without impacting bondholder security seems very sensible. Whatever the source of cash, cash inflow helps the company to manage their current situation.
3) It is paving the way for refinancing. Both potentially utilising the cash from bullet 2 above or simply in general by allowing the potential for refinancing prior to May 2022 (again a good thing).
4) Overall it demonstrates the company continues to be very professionally and competently managed.
Clearly the listed bond prices have not reflected the above interpretation (down circa 6% today) but frankly who knows what is going on with the supply and demand for these bonds. Maybe the very basic interpretation is that more debt is bad. I would say if it doesn't impact security and helps take advantage of low cost finance and manage a cash squeeze then it is very good.
Side point: In retrospect, these excellent pitch performances, which I expect we are all very much enjoying, seem to be the cumulative result of long periods of investment in players, brand, facilities etc off the pitch. People (e.g. channel 5 commentators) were saying right at the start of this year that a quiet confidence was building at the club and with hindsight we can say they were right, and they were right for real reasons. So I feel Wasps are in a great place to continue a long commercial and sporting journey.
Liquid Gold
Well-Known Member
Fucking hell. It’s got to be PR because nobody is deluded enough to think that a £17m downturn and asking creditors to let you off is ever a good thing.From ADVFN - must be the WASPS PR machine?
Hi All, I see this as positive for the following reasons:
aringadingding
6 Oct '20 - 11:59 - 110 of 111
1) It removes certain covenants. To be honest at this stage of the game I don't see covenants as particularly relevant. The removal of requirements to meet them allows management to focus on doing the most important things with the cash they have while effectively gaining advance permission from lenders to do this.
2) It sets the company up for further non-recourse debt raising. Here non-recourse means without recourse to the assets on which the bonds are secured (a good thing). This borrowing would represent cash inflow to the company, and may or may not relate to government provided COVID-19 financing. Government-provided financing would be likely to be relatively favourable terms (e.g. lower interest rate than the bonds). I'm not sure how certain it is that government provided cash may appear, but to set the group up to receive it without impacting bondholder security seems very sensible. Whatever the source of cash, cash inflow helps the company to manage their current situation.
3) It is paving the way for refinancing. Both potentially utilising the cash from bullet 2 above or simply in general by allowing the potential for refinancing prior to May 2022 (again a good thing).
4) Overall it demonstrates the company continues to be very professionally and competently managed.
Clearly the listed bond prices have not reflected the above interpretation (down circa 6% today) but frankly who knows what is going on with the supply and demand for these bonds. Maybe the very basic interpretation is that more debt is bad. I would say if it doesn't impact security and helps take advantage of low cost finance and manage a cash squeeze then it is very good.
Side point: In retrospect, these excellent pitch performances, which I expect we are all very much enjoying, seem to be the cumulative result of long periods of investment in players, brand, facilities etc off the pitch. People (e.g. channel 5 commentators) were saying right at the start of this year that a quiet confidence was building at the club and with hindsight we can say they were right, and they were right for real reasons. So I feel Wasps are in a great place to continue a long commercial and sporting journey.
jordan210
Well-Known Member
From ADVFN - must be the WASPS PR machine?
Hi All, I see this as positive for the following reasons:
aringadingding
6 Oct '20 - 11:59 - 110 of 111
1) It removes certain covenants. To be honest at this stage of the game I don't see covenants as particularly relevant. The removal of requirements to meet them allows management to focus on doing the most important things with the cash they have while effectively gaining advance permission from lenders to do this.
2) It sets the company up for further non-recourse debt raising. Here non-recourse means without recourse to the assets on which the bonds are secured (a good thing). This borrowing would represent cash inflow to the company, and may or may not relate to government provided COVID-19 financing. Government-provided financing would be likely to be relatively favourable terms (e.g. lower interest rate than the bonds). I'm not sure how certain it is that government provided cash may appear, but to set the group up to receive it without impacting bondholder security seems very sensible. Whatever the source of cash, cash inflow helps the company to manage their current situation.
3) It is paving the way for refinancing. Both potentially utilising the cash from bullet 2 above or simply in general by allowing the potential for refinancing prior to May 2022 (again a good thing).
4) Overall it demonstrates the company continues to be very professionally and competently managed.
Clearly the listed bond prices have not reflected the above interpretation (down circa 6% today) but frankly who knows what is going on with the supply and demand for these bonds. Maybe the very basic interpretation is that more debt is bad. I would say if it doesn't impact security and helps take advantage of low cost finance and manage a cash squeeze then it is very good.
Side point: In retrospect, these excellent pitch performances, which I expect we are all very much enjoying, seem to be the cumulative result of long periods of investment in players, brand, facilities etc off the pitch. People (e.g. channel 5 commentators) were saying right at the start of this year that a quiet confidence was building at the club and with hindsight we can say they were right, and they were right for real reasons. So I feel Wasps are in a great place to continue a long commercial and sporting journey.
Wow wasps fans really are quite deluded. Looking at post history they are a holder of bonds.
Liquid Gold
Well-Known Member
Bond down 8% to 40p in the £ today.
jordan210
Well-Known Member
You would assume as more bond holders see the notice its only going one way