Wasps 22 Discussion Threads

[l2s] 13/5/2022 23:27

I fully understand that suspicion and cynicism may come naturally to many of us but on balance I must agree more with the sentiments of Ozzie_dog. I just hope that come the 30 June I'm not proved to be wrong!

[ozzie_dog] 13/5/2022 19:06

That's good news, I have almost £170k coming back to me from the bond redemption, and I would much rather leave it in there until June earning 6.5% PA, than get it back in the next few days.

[a0002577] 13/5/2022 18:06

Well : it is Friday 13th after all.

Absolutely disgraceful behaviour. Issued late on a Friday afternoon and despite assurances to the contrary the dividend has not been paid.

[jimpy6365] 13/5/2022 17:28

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.

[grahamg8] 13/5/2022 17:10

Stephen Vaughan thanks bond holders for their continued support. After todays kick in the teeth I doubt he has any left. But they do say 'bonds are redeemed on completion of the refinancing' and 'full redemption will be delayed' in separate sentences. Now I may be cynical but this holds out the possibility of a part bond repayment at the end of June and the rest at some far distant point in the future. With HSBC providing the senior debt this looks like the bond holders will be relegated in the pecking order if not paid in full on or before the end of June. We would need a higher coupon to compensate if that were to happen.

[dandigirl] 13/5/2022 17:00

Apologies jimpy!

[dandigirl] 13/5/2022 16:58

Found the RNS. New group being led by HSBC.

[dandigirl] 13/5/2022 16:55

That’s very naughty! New funder is holding Mr R where he can be squeezed to hurt.

Thanks CC.

[aringadingding] 13/5/2022 16:51

I would imagine it's brinkmanship of a form. I doubt there is anybody involved in the day to day negotiations that is directly a major bondholder or speaks for the bondholders, which I expect makes things harder. The company does not want to give the bondholders a bad deal as they are fans and it would be horrific publicity, but the new lending group is not so sensitive to that. Perhaps the new lending group has suggested/requested something like the existing bondholders roll over 50% of their holding, sit subordinated to their debt, and are paid down over say 5 years. For the new lenders that would be upside with minimal downside but for the management it would be basically unneccessary hassle, firstly to seek bondholder consent and secondly the further legal and advisory fees, so they'd probably rather just keep it simple. They can always use it as a negotiating tool though.

You could say it's embarrassing to not have it sorted given the time available, but then brinkmanship and negotiation... some people out there just can't stop being like this.

In case you are wondering the shares I invested in have not done amazingly well and indeed fell a lot on the days they went ex-div. If you guys get repaid in full (which I suspect you will) it will have been better than my path but still you make your decisions and live with them.

[fastcat99] 13/5/2022 16:08

"Delaying payment without compensation or prior warning does NOT presage a harmonious refinancing" - aka: WTF ??

Well, at least our beloved management have (just) fulfilled the Friday 13th spec ! :(

Please DO post any further official statements/insights ASAP

[cc2014] 13/5/2022 16:00

RNS out.

Payment being "delayed" pending "completion of financing"

"refinancing expected to complete on or before 30th June"

[dandigirl] 13/5/2022 14:46

6 months ago, jumpy jimpy.

An announcement would have been made by now if payment is not on its way. It’s not unusual for payments to be late. Monday, is my guess.

[jimpy6365] 13/5/2022 14:40

From audit report last financial year (November 2021)

Explanation of material uncertainty
Wasps Finance PLC is dependent on Wasps Holdings Limited and its subsidiary, Arena Coventry Limited, being in a position to repay their loans to the company so that the company can meet the scheduled redemption of its retail bonds in 2022, and to meet interest obligations on those loans so that the company can meet its interest obligations on the retail bonds prior to redemption.
The directors note that Wasps Holdings Limited is currently pursuing various refinancing options to enable the repayment of amounts owed to the company and, in turn, to facilitate the redemption of the retail bonds in 2022.
However, the directors have drawn attention to the risk that refinancing may not be successful and, if successful, may not be completed in time for the scheduled redemption of the retail bonds.

[jimpy6365] 13/5/2022 12:32

Nothing showing yet.

[retirado] 13/5/2022 11:09

not yet - Hargreaves

[verymaryhinge] 13/5/2022 10:12

anyone been paid yet ?

[a0002577] 04/5/2022 10:41

Not surprising that A J Bell let's us know first - they do after all sponsor another Premier team and I expect they are keeping a careful eye on the refinancing of what is after all one of their main rivals.

[135791113] 03/5/2022 17:11

Wonder how they have re-financed? Would not be unusual to offer another bond to repay the last one, but maybe they have cheaper borrowing now than 6%. Suspect a bank would lend against the stadium at maybe 4% or less?

[zzaxx99] 03/5/2022 07:13

Got a message from AJBell this morning, confirming redemption om May 13th

[dandigirl] 26/4/2022 08:58

Wasps/Richardson are not allowed to buy back in the way you mention.
For goodness sake!

[grahamg8] 26/4/2022 07:41

Well someone bought 10,000 at 96.5, I admit not actually 94, at 12.03 yesterday. They will get repaid 100 on 15 May. It could have been Wasps because they are the ones who will be in effect buying back the bonds at 100. The amount of money involved is pretty small because the market is so illiquid, and the opportunity has now gone. 3.26% less fees plus a little interest sounds pretty good to me, but not dandigirl apparently. It sounds even better on an annualised basis, 63.04%.

[dandigirl] 25/4/2022 23:09

omg! do you really believe what you write graham? no brain!

[grahamg8] 25/4/2022 20:58

If WAS1 has the cash to repay the bonds they could have bought them for 94 this morning or waited three weeks and paid 100. No brainer.