Wasps downward spiral... (85 Viewers)

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oldskyblue58

oldskyblue58

CCFC Finance Director
This link gives details

Notice of Refinancing and Delay to Repayment - 15:41:41 13 May 2022 - WAS1 News article | London Stock Exchange


Notice of Refinancing and Delay to Repayment
WASPS FINANCE PLC
Released 15:41:41 13 May 2022
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RNS Number : 5017L
Wasps Finance PLC
13 May 2022

13 May 2022

WASPS FINANCE PLC
£35,000,000 6.50 PER CENT. SECURED BONDS DUE 13 MAY 2022

(ISIN: XS1221940510, COMMON CODE: 122194051)

Notice of Refinancing and Delay to Repayment

Wasps Finance plc (the "Issuer") provides an update regarding the refinancing of the Issuer's £35,000,000 6.50 per cent. Secured Bonds due 13 May 2022 (ISIN: XS1221940510, Common Code: 122194051) (the "Bonds").

Together with the support of Wasps Holdings Limited and Arena Coventry Limited (together, the "Guarantors"), the Issuer has agreed, subject to final due diligence and documentation, the terms for the refinancing of the Secured Bonds, with a lending group including HSBC UK Bank plc ("HSBC") as senior debt provider.

The Bonds' final Maturity Date is set to occur on 13 May 2022 and in connection with the proposed refinancing, the redemption of the Bonds at their nominal amount will be delayed pending completion of the refinancing. U.S. Bank Trustees Limited (the "Trustee") has also been notified of this delay and the Issuer expects to complete the refinancing on or before 30 June 2022.

Wasps Finance plc will continue to meet its obligations under the Bonds to pay interest as it falls due, including the upcoming payment on 13 May 2022, until the Bonds are redeemed on completion of the refinancing.

Stephen Vaughan, Chief Executive Officer of Wasps Holdings Limited, commented:

"We are pleased to have agreed the terms with HSBC UK. While we complete the final terms of the refinancing, the full redemption of the Bonds will be delayed. We thank bondholders for their continued support and look forward to updating them further in due course."


The Issuer will provide further updates as appropriate.

Enquiries:

Elizabeth Snow
[email protected]
+44 (0)20 7353 4200

END


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Cant help thinking that they left it for some reason until the very last minute and for some reason didnt get it over the line for HSBC to pay out. Possibly the legals involved took longer than expected? or the charges still in place needed to reordered in priority ?

Pretty shoddy yet again all the same. But seems there is a deal in place to repay the bondholders via HSBC plus others

the repayment date coincides with the company year end, i dont know if that is significant in some way ?
 
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oldskyblue58

oldskyblue58

CCFC Finance Director
If the Trustees agree to it i would think so. They will have to pay interest on the bonds between 13/05/22 and the redemption date. Not sure what the bond document says about delays and penalties though
 
Gynnsthetonic

Gynnsthetonic

Well-Known Member
That Shugs and Neils really piss me off on that Wasp message board saying so what about the bonds, they've bought a ground and have a tenant on a 10 year lease. Surely this doesn't look good for them and they are still in the shit financially, I was doing some contract work at stadium last week and there were rumours amongst staff that Richardson is fucked and is now borrowing money to keep Wasp afloat.
 
SBAndy

SBAndy

Well-Known Member
Gut feeling tells me their borrowing will be interest-only, meaning their issues continue ad infinitum.
 
fernandopartridge

fernandopartridge

Well-Known Member
SBAndy said:
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.
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I thought it probably just a delay with CH to be honest
 
SBAndy

SBAndy

Well-Known Member
fernandopartridge said:
I thought it probably just a delay with CH to be honest
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Clearly not. It’s not been finalised. This clip of the notice has me…intrigued.

the Issuer has agreed, subject to final due diligence and documentation, the terms for the refinancing of the Secured Bonds
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Of course, could be nothing, but the fact they’ve missed the deadline and there’s still seemingly DD and documentation to complete paints a picture of a pretty sloppy transaction.
 
O

oldfiver

Well-Known Member
SBAndy said:
Clearly not. It’s not been finalised. This clip of the notice has me…intrigued.



Of course, could be nothing, but the fact they’ve missed the deadline and there’s still seemingly DD and documentation to complete paints a picture of a pretty sloppy transaction.
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They put out notices to the Investment Brokers a week a go that the refinace had ben agreed and repayment would be on time
 
SBAndy

SBAndy

Well-Known Member
oldfiver said:
They put out notices to the Investment Brokers a week a go that the refinace had ben agreed and repayment would be on time
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Exactly. Something about this seems off. When bond holders are contacted saying they’ll get their money back on the maturity date, then that rolls around and they’re told it’s another 6 weeks…it doesn’t sit right.
 
fernandopartridge

fernandopartridge

Well-Known Member
SBAndy said:
Exactly. Something about this seems off. When bond holders are contacted saying they’ll get their money back on the maturity date, then that rolls around and they’re told it’s another 6 weeks…it doesn’t sit right.
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They must have known at that point that any agreement was subject to due diligence.
 
Grendel

Grendel

Well-Known Member
oldfiver said:
Probably more like a collection tin
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I think this is surprising and I assume must have something to do with FYE looking at the revised timings
 
chiefdave

chiefdave

Well-Known Member
So what happens if the due diligence throws something up, maybe something like the stadium being massively over valued as happened to Wasps at Loftus Road, the reason they ended up at Wycombe in the first place.

Surely if due diligence is still being carried out there is a chance, no matter how small, the finance won't be provided, what then?
 
O

oldfiver

Well-Known Member
I am more interested in "the lending group" have they had to go to a consortium of investors who are underwriting the primary lender. Does not sound like the loan is predicated on the super value stadium ?
 
Gynnsthetonic

Gynnsthetonic

Well-Known Member
oldfiver said:
I am more interested in "the lending group" have they had to go to a consortium of investors who are underwriting the primary lender. Does not sound like the loan is predicated on the super value stadium ?
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That's the story I heard last week or along those lines and Richardson can't afford propping the business up anymore
 
B

Brighton Sky Blue

Well-Known Member
Gynnsthetonic said:
So Wasp won't own it but a bank will or other investors, everything CCC said Sisu would do which is why they wouldn't sell to them
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Our fate is tied to Wasps whether we want to admit it or not-if Richardson really has borrowed the cash for this then it just got a lot more precarious.
 
duffer

duffer

Well-Known Member
Brighton Sky Blue said:
Our fate is tied to Wasps whether we want to admit it or not-if Richardson really has borrowed the cash for this then it just got a lot more precarious.
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I'm not sure I quite see it that way. If Wasps should fail one day, there aren't many customers in this town for a 32,000 seater stadium.

Anyhow, I must admit that I'm pleasantly surprised to see them letting down the bond holders at such a late date - especially after stating earlier in the week that all was well.

I'm unconvinced that the refinancing is going smoothly if it's not been sorted by now. As long as the Council don't use any taxpayers money to prop them up I couldn't care less what happens to Wasps, frankly.
 
Grendel

Grendel

Well-Known Member
duffer said:
I'm not sure I quite see it that way. If Wasps should fail one day, there aren't many customers in this town for a 32,000 seater stadium.

Anyhow, I must admit that I'm pleasantly surprised to see them letting down the bond holders at such a late date - especially after stating earlier in the week that all was well.

I'm unconvinced that the refinancing is going smoothly if it's not been sorted by now. As long as the Council don't use any taxpayers money to prop them up I couldn't care less what happens to Wasps, frankly.
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Moonstone have the ultimate rights if tenure to the stadium lease I would assume not wasps
 
Grendel

Grendel

Well-Known Member
Gynnsthetonic said:
What would Moonstone do with it, its not like they can sell it for housing or anything
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well it’s non rugby side is not loss making and there is a football club paying rent..
 
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