Wasps downward spiral... (77 Viewers)
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Gynnsthetonic
Well-Known Member
London Stock exchange announce they havnt been able to refinance the bond with HSBC and other parties so an extension of the bonds to allow for refinancing and hopefully reinstated on the stock exchange.
So no news as expexted
So no news as expexted
jordan210
Well-Known Member
WASPS FINANCE PLC
£35,000,000 6.50 PER CENT. SECURED BONDS DUE 13 MAY 2022
(ISIN: XS1221940510, COMMON CODE: 122194051)
Update on proposed redemption and intention to launch consent solicitation
Wasps Finance plc (the "Issuer") today provides an update on the refinancing and redemption of the Issuer's £35,000,000 6.50 per cent. Secured Bonds due 13th May 2022 (ISIN: XS1221940510, Common Code: 122194051) (the "Bonds").
Further to the announcement on 30th June 2022, the Issuer has not yet been able to agree 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 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.
Bondholders will continue to receive interest for the period from 13th May 2022 on a half yearly basis until the date of redemption.
END
£35,000,000 6.50 PER CENT. SECURED BONDS DUE 13 MAY 2022
(ISIN: XS1221940510, COMMON CODE: 122194051)
Update on proposed redemption and intention to launch consent solicitation
Wasps Finance plc (the "Issuer") today provides an update on the refinancing and redemption of the Issuer's £35,000,000 6.50 per cent. Secured Bonds due 13th May 2022 (ISIN: XS1221940510, Common Code: 122194051) (the "Bonds").
Further to the announcement on 30th June 2022, the Issuer has not yet been able to agree 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 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.
Bondholders will continue to receive interest for the period from 13th May 2022 on a half yearly basis until the date of redemption.
END
shepardo01
Well-Known Member
" 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"
Does this sound like they might get the cash from WMCA/CCC??
Does this sound like they might get the cash from WMCA/CCC??
D
Deleted member 5849
Guest
So at what point do bond holders pull it down? I guess it's not particularly in their interests to do so.
Liquid Gold
Well-Known Member
pretty shocking that they can just kick it down the road. As expected though.
Liquid Gold
Well-Known Member
Just need a statement to come from a third party, lets call them isus capital to say they'd purchase the stadium for the bond value.
chiefdave
Well-Known Member
This sounds like there's a very significant danger of HSBC pulling out. The previous statements were more finalising an agreement, this sounds more like looking elsewhere.
Extending the bond sounds like a longer term thing, as in they haven't got the money to pay it back and nobody will lend it to them so they're going to try and put it off a year or two. Guess we need to wait and see how long we're talking about when they say extend the bond. I'm assuming its longer than the month to month they have been doing or they would have just kept going with that.
MalcSB
Well-Known Member
Sounds suspiciously linked to me.
Peter Billing
Well-Known Member
Think we can take any Wasps statement with a pinch of salt. "Making progress" could be nothing more than submitting an application form but the wording is vague enough to imply something more positive to placate bondholders.
Liquid Gold
Well-Known Member
It does feel significant that this is the first time they've said HSBC just won't fund them.
London Wasps are heading into liquidation.
Nick
Administrator
They will be bailed out.
Philosoraptor
Well-Known Member
Has the 12th of August date for refinancing been thrown out of the window then?
A new update was presented by Wasps Finance Plc along with a revised date of August 12 for the refinancing to be completed and redemption of the bonds. CoventryLive understands this process will be completed before the revised date, and potentially before the next update regarding the refinancing, due on or before July 29.
www.coventrytelegraph.net
A new update was presented by Wasps Finance Plc along with a revised date of August 12 for the refinancing to be completed and redemption of the bonds. CoventryLive understands this process will be completed before the revised date, and potentially before the next update regarding the refinancing, due on or before July 29.
Wasps confirm further delay to repayment of £35million to bondholders
The Coventry Building Society Arena, formerly the Ricoh Arena, was purchased using a unique bond scheme
I don’t see it this time Nick I really don’t…
chiefdave
Well-Known Member
Its all a bit over my head but it reads to me that its now going to be significantly longer so they can't get away with continually saying 'we'll get back to you in a couple of weeks'.Has the 12th of August date for refinancing been thrown out of the window then?
A new update was presented by Wasps Finance Plc along with a revised date of August 12 for the refinancing to be completed and redemption of the bonds. CoventryLive understands this process will be completed before the revised date, and potentially before the next update regarding the refinancing, due on or before July 29.
Wasps confirm further delay to repayment of £35million to bondholders
The Coventry Building Society Arena, formerly the Ricoh Arena, was purchased using a unique bond scheme
Sounds like they will be going back to bondholders and asking for a change in the terms of the bond to allow it to run for longer. that could be 6 months or it could be 5 years we just don't know at this point. Of course the bondholders then have to decide if they agree to these new terms or they believe there is significant risk they won't be repaid at which point they may wish to consider their alternative options.
At the very least I expect they will want a significant increase in the interest rate they are receiving and given Wasps are losing millions every year where is that coming from?
Not sure there's much that can be done to up the asset value in any significant way. Guess they could tie us in for longer but doubt SISU would agree to that and how much difference would it really make. A couple of new conference rooms isn't going to up the value in any significant way.
Does this also indicate that maybe the valuation of the lease that was questioned at the time was greater than it reasonably should have been. Conveniently high enough to cover the amount they wanted to borrow. That will also be a worry to bondholders, they might not have the security they thought they did.
MalcSB
Well-Known Member
I think your reading is spot on.
MalcSB
Well-Known Member
They have already.
Philosoraptor
Well-Known Member
This is how I am reading it.
They are going to continue with the bond offer, but also a loan from elsewhere to cover the loss making.
Nick
Administrator
Unless it's not a loan and they somehow just get a grant they don't need to pay back.
This can be used to increase the assets value, then there can finance and pay back the bonds.
Its sounding like the arrangement they had to buy it in the first place.
Nick
Administrator
Do they go to every one to ask individually?
They need a concerted complaint to the FCA , news media and Private Eye !
Philosoraptor
Well-Known Member
Maybe, it does seem to me that this money may not be forthcoming from the WMCA, so to make up what they owe by a loan from a bank and tapping up the bondholders with better returns etc instead.
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D
Deleted member 5849
Guest
The question is though what your alternative is. At least keeping it going gives you interest payments and a chance of bond being paid back. Going nuclear could lose everything.
So they're probably tied into grumbling but going along with it
Have you sent the latest notice to your MP?
Philosoraptor
Well-Known Member
Think we might be getting into the territory of when the bond does get put back on the market, people selling them will just kill 'em as a company.
The loan taken out from a bank will not be enough to cover the losses.
All conjecture though.
The loan taken out from a bank will not be enough to cover the losses.
All conjecture though.
MalcSB
Well-Known Member
I believe they do - they had to do it once before IIRC.
MalcSB
Well-Known Member
People selling them won’t kill them as a company, they will still have the same face value regardless of what they are sold for. The key will be who buys them at what price. If Wasps can buy them back themselves at less than face value their risk will be mitigated somewhat.