Club aims to raise £35m from bond (13 Viewers)

[SkyBlue_Bear83]

Wasps are set to become the first sports club to issue a retail bond on the London Stock Exchange.
The rugby club, which moved from High Wycombe to Coventry last year after buying the Ricoh Arena, hopes to raise up to £35m from investors and fans with the launch of a listed bond tomorrow. Sources said the rate to be paid to investors would be about 6.25% to 6.75%. Some of the proceeds are expected to be used to pay down a loan from Coventry city council.

http://www.thesundaytimes.co.uk/sto/business/Retail_and_leisure/article1548535.ece


Anyone explain this in simple terms, looks like Les Reid claiming they were going to ask fans to fundraise the paying back of the loan wasn't too far off the mark.

 

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[RFC]

Wasps are set to become the first sports club to issue a retail bond on the London Stock Exchange.
The rugby club, which moved from High Wycombe to Coventry last year after buying the Ricoh Arena, hopes to raise up to £35m from investors and fans with the launch of a listed bond tomorrow. Sources said the rate to be paid to investors would be about 6.25% to 6.75%. Some of the proceeds are expected to be used to pay down a loan from Coventry city council.

http://www.thesundaytimes.co.uk/sto/business/Retail_and_leisure/article1548535.ece


Anyone explain this in simple terms, looks like Les Reid claiming they were going to ask fans to fundraise the paying back of the loan wasn't too far off the mark.

Stick with Les he knows the score! Interestingly heard a lot of disturbing news about WASPS on Saturday that will have a very, very negative effect on CCFC.

Before anybody asks, CONFIDENTIAL but watch this space and the next 12 months with great interest.

 

[lordsummerisle]

Stick with Les he knows the score! Interestingly heard a lot of disturbing news about WASPS on Saturday that will have a very, very negative effect on CCFC.

Before anybody asks, CONFIDENTIAL but watch this space and the next 12 months with great interest.

Been watching that space to see if a new ground will appear in it for longer than the last 12 months.

 

[Grendel]

I am sure in the know will be along soon to explain.

 

[Johnnythespider]

Stick with Les he knows the score! Interestingly heard a lot of disturbing news about WASPS on Saturday that will have a very, very negative effect on CCFC.

Before anybody asks, CONFIDENTIAL but watch this space and the next 12 months with great interest.

Would that be the space between your ears

 

[Nick]

Advert in the telegraph telling everybody to invest?

 

[cmoncity]

If your writing on here surley you can spill the beans about what you have heard.

 

[RFC]

Been watching that space to see if a new ground will appear in it for longer than the last 12 months.

Still believe it will but let's just wait and see!!!!!

 

[chiefdave]

Heard this the other day from my accountant, think I might have mentioned it on here. Apparently in the city its regarded as a bit of a joke as their numbers don't stack up and its secured against the Ricoh which they don't technically own.

Don't shoot the messenger, just relaying what I was told.

Would like to hear their explanation of why this is needed when they are supposedly the richest club in Europe now. There was some talk a while back that they needed to raise money as they didn't have it themselves, very quickly shot down by posters who claimed to know better. What happens if they don't get enough?

 

[skybluetony176]

Now the Sunday Times has it in for SISU too. Is there not a media outlets out there who are not interested in destabilising CCFC and it's fans. At least we have SISU to protect us from it all with their brilliance. All hail SISU.

 

[SkyBlue_Bear83]

Poor attempt to deflect

 

[lordsummerisle]

Now the Sunday Times has it in for SISU too. Is there not a media outlets out there who are not interested in destabilising CCFC and it's fans. At least we have SISU to protect us from it all with their brilliance. All hail SISU.

Don't see how the Sunday Times article can be seen as anti-Sisu by anybody.

Just a press release presented as news really, which is what a lot of journalism is reduced to nowadays sadly.

 

[skybluetony176]

Don't see how the Sunday Times article can be seen as anti-Sisu by anybody.

Just a press release presented as news really, which is what a lot of journalism is reduced to nowadays sadly.

Neither do I. But plenty on here see it that way. I was just helping them out.

 

[Grendel]

Now the Sunday Times has it in for SISU too. Is there not a media outlets out there who are not interested in destabilising CCFC and it's fans. At least we have SISU to protect us from it all with their brilliance. All hail SISU.

Can you explain how this relates to the thread?

 

[skybluetony176]

Can you explain how this relates to the thread?

No.

 

[Nick]

Neither do I. But plenty on here see it that way. I was just helping them out.

Who has said anything about the press being anti SISU?

 

[chiefdave]

Anyone explain this in simple terms, looks like Les Reid claiming they were going to ask fans to fundraise the paying back of the loan wasn't too far off the mark.

Some of it went over my head when the differences between retail bonds and other types of investment was being explained but basically it's not dissimilar to buying shares or investing in a hedge fund. Essentially you invest in Wasps on a high promised return. Unlike shares you don't actually own anything so if it goes badly you lose your investment. In this case they are offering the Ricoh as security against those losses.

the reason I was told it was laughable are that the figures don't add up, the return being offered is apparently way to high based on the available evidence and they are offering something they don't own as security.

 

[Nick]

So if it all goes tits up, they are going to sell the lease / ricoh and pay people back?

At what point do you get a return on the investment?

 

[skybluetony176]

Who has said anything about the press being anti SISU?

There was a whole thread the other week about Wasps stories being reported as a deliberate attempt to destabilise CCFC. I'm surprised you missed it.

 

[Nick]

There was a whole thread the other week about Wasps stories being reported as a deliberate attempt to destabilise CCFC. I'm surprised you missed it.

No I read it. I just thought that was about CCFC and not SISU.

 

[skybluetony176]

So if it all goes tits up, they are going to sell the lease / ricoh and pay people back?

At what point do you get a return on the investment?

If you change the words lease / Ricoh for CCFC you could be talking about SISU's plans. If in fact they have one.

 

[chiefdave]

So if it all goes tits up, they are going to sell the lease / ricoh and pay people back?

At what point do you get a return on the investment?

I believe the idea is you get an annual return which is greater than you would get from any offering where you were guaranteed to not lose your money.

I assume they are actually offering ACL but making it sound like the Ricoh as bricks and mortar offer more security than a failed company would be. I'm sure the council would have taken steps to ensure finance couldn't be raised against the Ricoh itself or the lease :thinking about: Presumably if it goes tits up and you can't cash out your bond, or whatever it is you do to get your initial stake back then ownership would change hands or they'd have to raise further cash to pay back the initial bond.

 

[skybluetony176]

No I read it. I just thought that was about CCFC and not SISU.

I think it was something to do with the whole people punishing the club to get one over on SISU conspiracy theory.

 

[chiefdave]

If you change the words lease / Ricoh for CCFC you could be talking about SISU's plans. If in fact they have one.

What really struck me was the fear of SISU doing something like this was exactly why people were against CCC selling to them. Sure now it's Wasps doing this we will see it is fine and nothing to worry about.

 

[skybluetony176]

What really struck me was the fear of SISU doing something like this was exactly why people were against CCC selling to them. Sure now it's Wasps doing this we will see it is fine and nothing to worry about.

Ironically it's probably our only chance of ever gaining control of the Ricoh now. Not while SISU are still around obviously. That would involve handing money over to a vendor rather than lawyers.

 

[Grendel]

Where is in the know when you need him?

 

[Skyblueweeman]

Is it Thursday?


Sent from my iPhone using Tapatalk

 

[chiefdave]

Where is in the know when you need him?

Looking for loose change down the back of the sofa.

 

[italiahorse]

What really struck me was the fear of SISU doing something like this was exactly why people were against CCC selling to them. Sure now it's Wasps doing this we will see it is fine and nothing to worry about.

Sisu aren't clever enough. Don't give them any credit.

 

[chiefdave]

Sisu aren't clever enough. Don't give them any credit.

I'm not but one of the recurring themes whenever SISU owning the Ricoh was ever mention was that there was no way it should be allowed as they'd go straight out and try and raise finance against it.

Wasps have had the Ricoh less than 12 months and they're trying to raise £35m against it. No doubt if it was SISU the forum would be in meltdown by now.

 

[Nick]

So realistically, if it all went to pot what would happen?

They would have to try and flog the lease / ACL to pay people back?

 

[skybluetony176]

I'm not but one of the recurring themes whenever SISU owning the Ricoh was ever mention was that there was no way it should be allowed as they'd go straight out and try and raise finance against it.

Wasps have had the Ricoh less than 12 months and they're trying to raise £35m against it. No doubt if it was SISU the forum would be in meltdown by now.

I think this is what he means when he says SISU aren't clever enough and don't give them the credit that they are. They've never even came near to being in the position that Wasps are in to do what Wasps are doing.

 

[Grendel]

I think this is what he means when he says SISU aren't clever enough and don't give them the credit that they are. They've never even came near to being in the position that Wasps are in to do what Wasps are doing.

Why is asking for money from supporters clever?

 

[Rusty Trombone]

In the sales blurb for the bond it states that Wasps own the arena outright, would seem to be a odd thing to get wrong. Also says the Arena has been valued at £48m.

 

[Nick]

In the sales blurb for the bond it states that Wasps own the arena outright, would seem to be a odd thing to get wrong. Also says the Arena has been valued at £48m.

Which link is that on?