Gynnsthetonic
Well-Known Member
Could the actual stadium and the other areas not be split so the football club have the lease to just the pitch and 4 stands while the rest is leased to another company?
Wasps downward spiral... (60 Viewers)
- Thread starter CCFC54321
- Start date
Liquid Gold
Well-Known Member
Bloke tried to fuck our football club off for his shit rugby club. Can be in the queue for a food bank for all I care.
Gynnsthetonic
Well-Known Member
As did the council
Brighton Sky Blue
Well-Known Member
Less Wasps, more Richardson.
Brighton Sky Blue
Well-Known Member
I did say almost.
Grendel
Well-Known Member
Er no
Earlsdon_Skyblue1
Well-Known Member
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
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 ?
Significant for a wasps apologist like you I suppose.
Liquid Gold
Well-Known Member
I hope the bin men fuck them up too
Terry Gibson's perm
Well-Known Member
Bridge is probably still waiting for them to tell him what he was to write to give it a positive spin.
Gynnsthetonic
Well-Known Member
It's ok no need to panic, Vaughan says it's to be paid at the end of June and all is good
Grendel
Well-Known Member
Liquid Gold
Well-Known Member
Didn’t know this was an option. I’ll tell any future debtors I’ll pay when I want.
Philosoraptor
Well-Known Member
Can the bond price still move between now and the date whenever the refinancing is meant to materialise or is it fixed on the date it was supposedly meant to be paid on?
Creditors!
Liquid Gold
Well-Known Member
Haha. You wouldn’t guess I’ve just finished an audit would you.
Not practical really if you think about it, especially when WASPs use the same resources
Cov Rugby has its own underlease at BPA for the pitch and stands etc
European Challenge Cup: Lyon 20-18 Wasps - Leo Berdeu's 15-point haul sinks Premiership side
Wasps' hopes of a first European final in 15 years end with a semi-final defeat by Lyon in France.
www.bbc.co.uk
I might - you Chartered?
Liquid Gold
Well-Known Member
Not yet. ACCA journey.
skybluesam66
Well-Known Member
Best way !
oldskyblue58
CCFC Finance Director
Been giving the latest wasps revelation a little thought.
So what do we know.
The deadline fixed 7 years ago and they missed it. They have it seems with this and other bond issues totally and consistently disrespected their investors. Would be very very hard to use a public investment route again. How could you trust them.
On the face of it things had been moving forward
- team started winning - but crowds not great but are all paying customers
- New training complex - doesn't create income much needs to be financed
- events back at stadium, concerts coming up and commonwealth games too - major events have not happened yet
- the crowds they do have though small are at least paying for tickets
- players being signed - but more players out and they would seem to be mainly high earners
- ccfc returning and paying rent
- planning permission on new hotel
- stadium sponsorship in place
So why the delay. Some possible reasons. Take your preference its only suggestions and guesswork
- the legals have taken longer to complete than anticipated
- wasps struggled to find a bank that would take it on.
- the problems between wasps and ccfc caused delays but ccfc have been back 12mths so could it be a factor- I don't think so
- CBS stadium sponsorship took time to get over the line so affected planning - shouldn't be a factor should it.
- the loan agreed in principle but subject to due diligence. Is there a problem with the due diligence. The lenders will need to prove not only security but also that there is a business there capable of making the repayments. Not just this year but for the foreseeable future. Do their projections stack up, can those figures be stressed by say 30% and still pay commitment - that kind of thing
- are wasps paying their liabilities as they fall due, are they keeping their trade creditors comfortable? . If not then that's a possible red flag to a lender. They would need increased guarantees to move forward
- are lenders demanding in their offer more investment from the owner. Is the owner prepared to do that. If not he risks losing his current investment
- do the existing security charges need satisfying or reordering or permission given to move forward?
- the pandemic has hit wasps harder than has been made public and the financial situation has got much worse
- no real positive cash flow because of end of season and major events not in yet
- if it is multiple lenders is it taking time to get it all arranged to the same date
Truth is probably a mix of several of the above which combined are serious problems day to day and particularly for lenders doing due diligence
We all know wasps are a financial basket case. I have no inside knowledge at all and still think the refinancing will be done. I dont see wasps going bust based on what we actually know for sure ( which isn't a lot) but I don't think there is much doubt that they are currently at point of high risk and struggling
So what do we know.
The deadline fixed 7 years ago and they missed it. They have it seems with this and other bond issues totally and consistently disrespected their investors. Would be very very hard to use a public investment route again. How could you trust them.
On the face of it things had been moving forward
- team started winning - but crowds not great but are all paying customers
- New training complex - doesn't create income much needs to be financed
- events back at stadium, concerts coming up and commonwealth games too - major events have not happened yet
- the crowds they do have though small are at least paying for tickets
- players being signed - but more players out and they would seem to be mainly high earners
- ccfc returning and paying rent
- planning permission on new hotel
- stadium sponsorship in place
So why the delay. Some possible reasons. Take your preference its only suggestions and guesswork
- the legals have taken longer to complete than anticipated
- wasps struggled to find a bank that would take it on.
- the problems between wasps and ccfc caused delays but ccfc have been back 12mths so could it be a factor- I don't think so
- CBS stadium sponsorship took time to get over the line so affected planning - shouldn't be a factor should it.
- the loan agreed in principle but subject to due diligence. Is there a problem with the due diligence. The lenders will need to prove not only security but also that there is a business there capable of making the repayments. Not just this year but for the foreseeable future. Do their projections stack up, can those figures be stressed by say 30% and still pay commitment - that kind of thing
- are wasps paying their liabilities as they fall due, are they keeping their trade creditors comfortable? . If not then that's a possible red flag to a lender. They would need increased guarantees to move forward
- are lenders demanding in their offer more investment from the owner. Is the owner prepared to do that. If not he risks losing his current investment
- do the existing security charges need satisfying or reordering or permission given to move forward?
- the pandemic has hit wasps harder than has been made public and the financial situation has got much worse
- no real positive cash flow because of end of season and major events not in yet
- if it is multiple lenders is it taking time to get it all arranged to the same date
Truth is probably a mix of several of the above which combined are serious problems day to day and particularly for lenders doing due diligence
We all know wasps are a financial basket case. I have no inside knowledge at all and still think the refinancing will be done. I dont see wasps going bust based on what we actually know for sure ( which isn't a lot) but I don't think there is much doubt that they are currently at point of high risk and struggling
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Gynnsthetonic
Well-Known Member
Thanks osb58 as always, it seems nobody knows apart from the people at the top, Wasp Rfc still losing millions per year, concerts don't make any money anyway I think they just break even as it costs millions to stage these big acts, are they really going to make a lot of money out of a gymnastics event, can't see it myself, no European Rugby next year possibly, 4k to 5k paying fans, not a lot really is it, their only big income is from our rent. Sisu must know all this and is why they are still hanging around.
Greggs
Well-Known Member
Did you enjoy the game yesterday?
Refinancing the £35m will require DD as you say OSB and that will need to answer two key questions: 1) Is the ground, plus any other assets, adequate security for the new debt ? 2) Can the club service the debt ?
The benefit for Wasps/lenders of us being back at the CBS is that lenders will think CCFC would buy the ground if things turn to shit and this might help address 1). However, I wonder if this is why we have continued our ‘new ground plans’. This would put a massive question mark against valuation because if we didn’t buy it, who else would ?! Even if this was still considered the planned ‘exit’ I don’t see SISU paying anywhere near that value. Unless additional security is provided I wonder if any potential lenders can get over this hurdle, let alone, will Wasps continue to generate enough income to service the debt…especially as we edge towards a slowdown in growth/potential recession and squeeze on disposable income. They might need an investor as well as lender(s) !
As you say though, it’s hard to comment in detail/with any certainty due to limited info available
Skyblueweeman
Well-Known Member
What I've taken from a great analysis. This is the most pleasing aspect of your post!
Terry Gibson's perm
Well-Known Member
Bridge has been released from his cage and has written his propaganda piece.
duffer
Well-Known Member
Nice to see you around SBWM, I was starting to get worried! Thank you also for your kind words on t'other thread a little while back, it's good to know that someone occasionally enjoys my inane ramblings!
Anyhow, yes, agreed another good bit of analysis from OSB. Whatever the reason is behind it, there's no way that Wasps would have wanted to delay repayment of the bond. It has to suggest problems somewhere in the process.
One thing that struck me when thinking it through, repayment of the bond is just about covering the money already spent. If Wasps are looking for someone to actually invest further in their business, they're actually going to have to take on even more debt (or offer equity, I guess).
Of course, they've already sold a share of their future profits to CVC for some up front cash. How much more is there to go round for other potential investors, I wonder? Interesting times!
Grendel
Well-Known Member
it’s a desperate article
Liquid Gold
Well-Known Member
Wasps provide update on bonds that generated £35m to purchase arena
Formerly known as the Ricoh Arena, the stadium is the home venue for Coventry City Football Club and Wasps Rugby
"Since moving to Coventry, it has been no secret that the Wasps Group has struggled commercially"
Strange that as I've never heard you mention it Bob.
Terry Gibson's perm
Well-Known Member
Skyblueweeman
Well-Known Member
Nice to see you around SBWM, I was starting to get worried! Thank you also for your kind words on t'other thread a little while back, it's good to know that someone occasionally enjoys my inane ramblings!
Anyhow, yes, agreed another good bit of analysis from OSB. Whatever the reason is behind it, there's no way that Wasps would have wanted to delay repayment of the bond. It has to suggest problems somewhere in the process.
One thing that struck me when thinking it through, repayment of the bond is just about covering the money already spent. If Wasps are looking for someone to actually invest further in their business, they're actually going to have to take on even more debt (or offer equity, I guess).
Of course, they've already sold a share of their future profits to CVC for some up front cash. How much more is there to go round for other potential investors, I wonder? Interesting times!
Life, mate....I'd love to while away the hours on SBT like many on here but with two kids under 4 and a new (ish) business to keep moving forward, I have less time to post. Still pop in now and then though!
Yep, that's a good point actually. Their offering appears to be dwindling with time...I'd assume apathy in the area is increasing whilst interest wanes and the success on the pitch hasn't materialised like they would've hoped.
I always thought that the relative success of their move, would be dependant on instant success which would then be built on. It's been pleasing to see that that couldn't be further from the truth.
In my business, I work with professional sports clubs. I've approached all relevant EPL, EFL, National League, FAWSL, FAW Championship, Rugby Premiership and Championship Rugby clubs with a view to working with them. Bar one. No prizes for guessing who.