Wasps 22 Discussion Threads

[jgh03] 18/5/2021 18:46

dandigirl, I've had the same message from AJ Bell today.

[fastcat99] 18/5/2021 18:35

I have asked Redmayne Bentley (who were one of the Guarantor Brokers for the original issuance of Bonds in 2017) whether they have received any notification from Wasps Finance.

@A0002577 Bonds, units, shares are (in ALMOST any context in this string) the same thing. And you can effectively ignore the mention by aringadingding of 103.9p on 13 May 2021 - those (as he actually did explain) were the original terms in the 2017 Prospectus, but, as a result of the 'Consent Solicitation' last Autumn, they have been superseded by the text which appears at the end of his post

[dandigirl] 18/5/2021 18:14

Anybody else with Bell had this please?

[dandigirl] 18/5/2021 18:13

aringadingding - as you say, nothing on the corporate website nor on the LSE. Something weird here?

[a0002577] 18/5/2021 17:39

What does this line

"13 May 2021 ......................................................... 103.90"

in post 292 by aringadingding mean?

We get back £103.9o for each unit which Sippdeal is calling a 'share'?

[aringadingding] 18/5/2021 17:23

P.S. I will do a happy jig also

[aringadingding] 18/5/2021 17:22

Quite a few things are weird really, such as why there is no announcement visible on either the wasps website or the LSE website. That might possibly explain why the price has not adapted. The rise in the price in the last few days seems a little curious one might say. The prospectus does use the word "principal" a few times to refer simply to a debt amount owed (being 100%). Plus clause 6(f) of the prospectus explicitly refers to buying in the open market, i.e. as an exceptional situation. Plus that's buying, not the right to buy. So I'd still be pretty sure it's 100%, and the low price is maybe because of overall complexity of the situation / market conservatism / market being a bit slow. It was pretty slow to various things in the past e.g. ground share announcement.

[zzaxx99] 18/5/2021 17:06

If they redeem at 100% (which appears to be what that consent decree asked for) that will be a fantastic outcome and I will dance a happy jig.

Having said that, I also don't understand why the bonds are still trading after the redemption was triggered.

[fastcat99] 18/5/2021 16:47

but but but - in which case (100%), WHY were the Bonds still trading after the announcement, and indeed with the price falling (minutely just before markets closed ??

[fastcat99] 18/5/2021 16:44

Yup, that was my reading too

[aringadingding] 18/5/2021 16:36

Oh ok!

From page 106 of original launch prospectus:

"Redemption at the option of the Issuer: On and after 13 May 2019 (unless they are to be
purchased pursuant to Condition 6(f), in which case at any time), the Issuer may, by giving not
less than 30 nor more than 60 days’ notice to Bondholders in accordance with Condition 16
(which notice shall specify the date fixed for redemption and shall be irrevocable) redeem in
whole, but not in part, the Bonds for the time being outstanding, at the following applicable
redemption amounts, plus accrued and unpaid interest on the Bonds (if any), to (but excluding)
the applicable date fixed for redemption, the applicable redemption amount to be determined by
reference to the date fixed for redemption occurring in the relevant Interest Period beginning on
the scheduled Interest Payment Date indicated below:
Date Percentage
13 May 2019 ......................................................... 105.85
13 November 2019................................................ 105.36
13 May 2020 ......................................................... 104.88
13 November 2020................................................ 104.39
13 May 2021 ......................................................... 103.90
13 November 2021................................................ 103.41"

...But then the consent solicitation that was passed in November last year states:

"Condition 6(c) (Redemption at the option of the Issuer) to allow the Issuer to redeem the Bonds at a redemption price of 100% of their principal amount in respect of any redemption at the option of the Issuer occurring at any time after the Interest Period beginning on 13 November 2020 until the scheduled final maturity date;"

So that would mean 100% of "principal amount" is payable... which I would be pretty sure, but not completely sure, means 100p per bond, and NOT the market price - any other opinions would be interesting!

[fastcat99] 18/5/2021 16:28

Jeesus Mary - don't say I didn't warn (us)!!: I GOT THE TIMING pretty well spot on, though who knows about the terms !
"at a rate to be determined"
But I guess it MUST be par, without any further interest - anything else would surely require a full Solicitation.

[dandigirl] 18/5/2021 16:18

Just got this from A J Bell


Wasps Finance Plc has announced that the Wasps Finance Plc 6.5% GTD 13/05/2022 GBP has redeemed on 13 May 2021.

Under the terms of the redemption, your account will be credited with cash in exchange for shares held, at a rate to be determined.

The cash proceeds will be credited to your account upon receipt.

Please be advised in some circumstances there may be delays in the proceeds being credited to us from our custodian. Please allow 10 working days for your account to be updated.

Please copy and paste the below FAQ link into your web browser for more information on corporate actions:
hxxps://www.ajbell.co.uk/sites/ajbell.co.uk/files/AJB_Corporate_action_FAQs.pdf

IMPORTANT NOTE - If you have any questions or queries regarding this event, please send us a secure message and ensure you quote the following in the ‘Subject’; field: CORPORATE ACTION - Wasps Finance Plc - 9649094

Updated: 18/05/21

[dandigirl] 17/5/2021 20:20

Up 6% today.

[dandigirl] 14/5/2021 19:14

Thank you very much. We are with Bell too and have ours this evening. Thank you again.

[aringadingding] 14/5/2021 18:06

Received just now, dandigirl. My account is with AJ Bell.

[dandigirl] 13/5/2021 08:38

Please post when your interest is received. Thks.

[ozzie_dog] 10/5/2021 10:01

@dandigirl, My first buy wasn't great, it was at about 95p, I have invested at various prices on the way down, and quite few times between 40p and 52p, my averaged weighted price is 59.2p in my fund and share account and about 79p in my SIPP and ISA, which gives me a weighted running yield of about 10% (not allowing for the gross equivalent being higher in my ISA and SIPP ), and also quite a good tax free capital gain of about £60k (at £1, which may not happen of course, but I expect it to be well above 59.2p)

[fastcat99] 08/5/2021 16:58

I wasn’t referring specifically to refinancing of the Bond (which is not imperative until a year from now); I am more concerned about the short-term finances
- we were told almost explicitly during last Autumn’s Solicitation that our consent was essential to maintain liquidity (Yes, they promised the November coupon would be paid in any event, but ‘they would say that, wouldn’t they?’).
- The main features of consent were: to remove the premium on early Redemption; to close the Interest Service Account (which had automatically ringfenced money for coupon payments) and allow fresh Senior debt; and to abolish the EBITA:FinanceCosts monitoring.
It seems all that ‘wriggle room’ has been used quite well, if rather secretively. I do take other bondholders’ comments that we are not Shareholders, but if we are SPECIFICALLY promised info that is then not forthcoming for MONTHS (my posts on November 12 and March 5 refer), my overall sense of trust is impaired.
When/if next week’s coupon is paid, my fearful thoughts may yet turn greedy :) I note the bid-offer spread is reassuringly narrow right now....

[aringadingding] 08/5/2021 13:09

Fastcat, thanks for that, i had not seen and it's great news.

The colour scheme and the name help make ccfc feel at home. The presence of a new sponsor implies the risk of sponsor leaving is lower. Keeping things fresh and new is always good too and being a british company and local to the area i think is great. That area of england has a lot going for it, particularly logistically in terms of location i mean, and a great business environment, so i think it's great for the sponser to emphasise that.

As for exposure of cbs to privileged information... yeah i guess that under nda as part of exclusivity agreement (which existed) some material non public financial information might well have been disclosed. They are a building society after all. The main financial risk is the refinancing anyway, and it still feels a bit early for anything tangible to be able to be announced, or disclosed to cbs, re. refinancing. I expect DR has the option of some pretty major moving around of cash to get a refinancing done, starting 6mths prior to maturity, and so he might as well wait 6mths from today at which point the financials will be more current and should be more positive, in contrast i mean to early repayment. But i expect they will have spoken of the refi in positive and enthusiastic terms, referring to discussions ongoing (which is a public fact), which they are perfectly entitled to, and anyway it's a circular situation because a good sponsor makes a refi more likely.

So it's good news.

[fastcat99] 08/5/2021 09:58

I haven’t spotted if anyone has mentioned the recently announced sponsorship/naming detail with the Coventry BS. This really puts icing on bondholders’ cake: the stadium is bringing in more money; so the virtual mortgage we hold is that much more valuable; and (one can surmise) the Building Society will have had some privileged view of both the current accounts and future strategy.
Interesting detail in Vaughan’s quite lengthy statement to Coventry Telegraph: apparently these discussions have been going on for several months, and he was NOT allowed to disclose this to Coventry FC at the time - Wasps Finance plc seems to hold all the best cards...

[grahamg8] 08/5/2021 09:16

Yes dandigirl due on 13 May. Running yield is 8.00% which is pretty decent for a steady as you go investment. But we also have the prospect of 23% capital increase to repayment in 12 months time. The share price still seems to be too low despite recent rises. The default risk is there but looks to be much lower than 6 months ago. Enjoy the ride.

[dandigirl] 07/5/2021 22:04

0_d: I seem to remember you got in early, much earlier than me.

I'm doing okay but you must be doing handsomely now.

Well judged.

Isn't an interest payment due next week?

[ozzie_dog] 05/5/2021 11:39

Good to see you have hit the front, its looking a lot better now that it did back when the price was around 40p, but even then I thought that although it was risky, it was good value, and well worth the risk. I did at times think that I had invested too much, but I'm not thinking that now.

[dandigirl] 05/5/2021 08:13

For A0002577: Now do you understand what averaging down means? Those of us who bought last Autumn are enjoying the sight of some paper profits.