Skybluemichael
Well-Known Member
What did coventry building society pay to sponsor the stadium? do you think they would be involved in refinancing the bonds? Like they paid nothing to sponsor but will give them a good mortgage
Wasps downward spiral... (19 Viewers)
- Thread starter CCFC54321
- Start date
The suggestions/rumour I heard was Hoffman was at the time involved with the CBS offering London wasps better refinancing terms and the stadium named after CBS and Coventry city has to come back to the city.
oldskyblue58
CCFC Finance Director
Hoffman is still chairperson of CBS
CBS is effectively a public company and Hoffman would not be allowed to take part in any negotiations loan or otherwise because of his previous involvement with the stadium.
As far as I know CBS have a maximum loan available for any borrower of £2m
More importantly CBS only lends in the residential market to individuals and doesn't provide loans to commercial trading limited companies as far as I know.
I could be wrong of course will wait see but I don't see CBS being involved in the wasps refinancing at all. Nor Hoffman
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Grendel why don’t you just fuck off and leave this site alone? Every thread is you around like a fucking shit stuck to a shoe you can’t shake off.
I have 0.25% of respect on this site but it’s 0.25% more than yourself. Your tiring and the majority who won’t add to this thread are-bored to the back teeth of you.
You may probably be right be it’s more than a coincidence that Hoffman is involved with the CBS and now sponsor the stadium and CCFC coming back?
Grendel
Well-Known Member
He is right and as usual you are talking nonsense
Grendel
Well-Known Member
This along with your numerous other predictions went well
CBS are governed by the Building Society's Act and do not have the regulatory permissions to provide commercial finance
fernandopartridge
Well-Known Member
It's a Friday as well!
AOM
Well-Known Member
Liquid Gold
Well-Known Member
More interested in how they're going to repay the bonds maturing in 2 weeks than how they did in a league game where there is no relegation and everybody qualifies for europe no matter what.
Liquid Gold
Well-Known Member
Would be mad for Richardson to just pay it off. If he was going to do that he could have done it when they moved and saved himself years of interest payments.
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duffer
Well-Known Member
I stopped watching it when it looked certain that Wasps were going to win. Arse.
Now I know how those people leaving the CBS in the 89th minute feel.
Gynnsthetonic
Well-Known Member
Bonds day on Friday, will anything actually happen or will it just be a normal day.
duffer
Well-Known Member
Grendel
Well-Known Member
All bond holders have been told they’ll be paid in full
Gynnsthetonic
Well-Known Member
Heard from a source from inside the CBS that Derek Richardson had to borrow money off some of his racehorse owner chums last months to cover Wasp costs.
duffer
Well-Known Member
Ah stop it now, you're just teasing me.
In truth of course, I've got no idea whether or not Wasps will be able to refinance the bond. Even if they do though, it's not going to be cheap, so it'll continue to be a big drag on the business.
In the meantime there's no evidence that their support will increase or that their on field performance will significantly improve. Not a great candidate for further investment I'd suggest, but I guess we'll see...
chiefdave
Well-Known Member
it will almost certainly just be a normal day and they'll be paid off. don't think there's any reason they have to say how they're raised the finances but it will no doubt be some sort of loan / mortgage that won't be revealed until the relevant set of accounts are published.
Would have thought the interest rate will be higher than the one they have at the moment.
fernandopartridge
Well-Known Member
Look out for a debenture being registered against Wasps Holdings Ltd at Companies House I guess
oldskyblue58
CCFC Finance Director
The bond was a way to fund their purchase when the wasps holdings wasn't established. The interest rate was 6.5% costing 2.275m pa with no capital repayment. High interest to reflect elevated risk of a sporting club bond
Things have not gone to plan, there were problems with the bond so raising finance by a second public bond was going to be difficult as the "confidence" or "excitement" for it was not there. Other factors were involved not least being it was expensive borrowing, pandemic etc
keep in mind it is not just about the rugby side of the business so any emphasis on crowd sizes is not as true as say for CCFC, and that the other parts of the business are more commercial than when they bought in.
Funding will come i think (and said often before) from more traditional but specialised lenders and be secured on the business assets, possibly not just the stadium. That could reduce the interest they pay. Then it will be all about the loan term and they effectively have a very long term assets to secure it with.
I am not convinced the interest rate will be higher, but we wont know until we see the 2022 & 2023 financials. As the bond will have been repaid i dont think we will see the 2022 ones until next March
Just as a for instance. They have been paying £2.275m pa interest and the debt remained static. If they got a secured repayment loan over 30 years at 5% that would cost £2.25m per annum with the loan reducing each year.
I am not sure it would be ordinary high street bank commercial loan, it will be tailored to suit. Clearly they have been able to raise the funds because of the emails sent to bondholders
Just as a thought it could be done in a similar way to how SISU raised funds but without the heavy interest charges because of the security on offer.
time will tell i guess
Things have not gone to plan, there were problems with the bond so raising finance by a second public bond was going to be difficult as the "confidence" or "excitement" for it was not there. Other factors were involved not least being it was expensive borrowing, pandemic etc
keep in mind it is not just about the rugby side of the business so any emphasis on crowd sizes is not as true as say for CCFC, and that the other parts of the business are more commercial than when they bought in.
Funding will come i think (and said often before) from more traditional but specialised lenders and be secured on the business assets, possibly not just the stadium. That could reduce the interest they pay. Then it will be all about the loan term and they effectively have a very long term assets to secure it with.
I am not convinced the interest rate will be higher, but we wont know until we see the 2022 & 2023 financials. As the bond will have been repaid i dont think we will see the 2022 ones until next March
Just as a for instance. They have been paying £2.275m pa interest and the debt remained static. If they got a secured repayment loan over 30 years at 5% that would cost £2.25m per annum with the loan reducing each year.
I am not sure it would be ordinary high street bank commercial loan, it will be tailored to suit. Clearly they have been able to raise the funds because of the emails sent to bondholders
Just as a thought it could be done in a similar way to how SISU raised funds but without the heavy interest charges because of the security on offer.
time will tell i guess
Grendel
Well-Known Member
Odd isn't it
HuckerbyDublinWhelan
Well-Known Member
So what does that mean?
SBAndy
Well-Known Member
Well you’d expect if they were going down the route of traditional finance there would be a charge logged over the Arena and/or a Debenture over Wasps Holdings Limited. Either a) there’s a hold-up with the charge registration at Companies House but the legal firm involved have given sign-off that it is in effect, or b) other funding means have been utilised.
Definitely too early to say one way or the other, and registration of charges at Companies House isn’t necessarily gospel in terms of immediacy, but you would naturally think that a charge would have been logged in time for maturity. Not like it’s come as a surprise.
Gynnsthetonic
Well-Known Member
What could happen if nothing paid?
SBAndy
Well-Known Member
Can’t say I know the answer to that.