Wasps 22 Discussion Threads

[ajjay] 18/5/2022 11:17

HI

Interest has arrived into my Hargreaves account this morning 11.00am

[zzaxx99] 18/5/2022 09:30

Interest arrived in AJ Bell account, arrived yesterday or today, but dated as Friday

I'm not convinced they're not in default now, despite paying the interest - surely the failure to repay the principal on the due date would count under 9(b) Breach of Other Obligations?

Kind of academic, as even if the trustees acted, they have 30 days to remedy the breach, which they're given themselves anyway.

Slightly nervy about what happens next month - very keen to see that money back in my account

[11madmax] 18/5/2022 09:09

Nothing in Redmayne Bentley. Looking back my coupon has always appeared in my account on the 18th of the month, so fingers crossed it appears by close of play today

[bagholder1] 18/5/2022 08:17

No haven't received the interest in my Interactive Investor account either

[bondholder] 18/5/2022 05:27

Has anyone else received the interest ? Nothing from HL so far.

[fastcat99] 17/5/2022 23:36

That payment ensures the bonds CANNOT be held to be in default, at least while the announced refinancing 'deadline' is still pending, and it is patent evidence that they have at least one financial nostril still above water ! :)

Just so stupid/lazy to have used contorted grammar in that RNS para: 'will continue.... as it falls due... upcoming...on 13 May'

[bondholder] 17/5/2022 17:16

If they've paid the interest that is a very good omen and suggests bona fides.

[a0002577] 17/5/2022 17:05

Well - the dividends have arrived in the family SIPPs.

Can only echo grahamg8's words.
I too has some follow on investments lined up - one was NESF.

Who is going to have that word in the ear of the editor?

[grahamg8] 17/5/2022 16:56

Yes fastcat it would always be a long shot, theoretical at best. A word in the ear of the editor of the Coventry Telegraph would probably be much more productive. I'm pretty annoyed because I had lined up a couple of follow on investments.

[fastcat99] 17/5/2022 14:49

@grahamg8 “we” can’t actually exercise the put option!
(without the Trustee’s discretion Unless one quarter Of Bonds or EGM intervenes)

Meanwhile, LSE has delisted the bonds, as I predicted

[grahamg8] 16/5/2022 17:27

Bond default conditions are on page 111 of the offer document. But if we were inclined, we don't have to wait 14/30 days. Bond holders could go for the Put Option option ha ha on page 107 because failure to pay the interest is one of the triggers (page 105). But this seems to put us in a worse condition than waiting.

Perhaps of more concern is that in my view Wasps Finance, Wasps Holdings and Arena Coventry are all insolvent. ie unable to pay debts as they become due. Holdings and Arena have to pay the interest if Finance don't. And so far none of them have.

This is brinkmanship of the highest order.

[bondholder] 16/5/2022 17:04

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 refinancingThe above doesn't sound like they are postponing but the ugly fact is that no cash has appeared ?

[fastcat99] 16/5/2022 16:22

I already said (#456) currently THERE IS NO MARKET IN WAS1 !!
(On Friday, I was told this by my broker who made it clear that signifies more, nastier things than simply that no trades were going through on that date)

@Bondholder - don't waste time looking for an interest payment, when management have already posted RNS to the effect it won't be paid until further notice !

Time to reread carefully the last Annual report
- the Strategic Report states "the Board had begun discussions regarding the refinancing of the bond on or before the scheduled maturity date in May 2022"
- the Directors' Report "continue to review options to refinance the bonds"
- The Independent Auditors note "the risk that refinancing may not be successful and, if successful, may not be completed in time for scheduled redemption" ((there is a more complete quote from jimpy6365 (#443 - quite presciently ahead of RNS posting!!)); and the full implications of Financial Statements Note "3.2 Going Concern" need to be considered in this light

WE DONT YET KNOW WHETHER WASPS WERE MATERIALLY CAPABLE OF MEETING OBLIGATIONS LAST FRIDAY - it is time for Bondholders to receive some assurances, not just the Trustees (who would do well to emerge from the woodwork now) and the auditors.

Oh by the way, it's just coming up to the 3 year anniversary of the last Auditors' resignation - because they had been offered "evidence which on testing proved to have been falsified"

[11madmax] 16/5/2022 15:42

I've not had my coupon (Redmayne Bentley) tbh I am more than slightly concerned. All the happy clappy talk that all's well that ends well doesn't overcome the fact that there is no reason not to have paid the coupon on Friday unless there are severe financial problems. My glass is half empty on this one!

[cc2014] 16/5/2022 15:27

#465 Can you actually get a quote though? because that 99.4 looks like the mid price from Friday to me and as far as I can see on L2 the MM aren't making a market.

HL have removed WAS1 from online trading for buying at least. Not sure about selling as I don't have a position

[l2s] 16/5/2022 15:18

Bearing in mind that 6.5% will continue to be paid until the delayed maturity of the bond I cannot see that any financial benefit would arise over persuing the 'default' position. The situation has certainly been badly communicated and dealt with but ultimately I will have invested in a bond at 6.5% which has been paid throughout and I will receive 100% of my capital back, albeit a few weeks later than anticipated. There may indeed be some points of principle involved here but my bottom line will always be did I get the financial result I was looking for? Call me naive if you like but I am happy to wait for the eventual capital repayment sometime in June. The current quoted price of the bond is £99.39 so the market doesn't seem to have any worries either.

[bondholder] 16/5/2022 15:18

Anybody seen evidence interest coupon has been paid ?

[fastcat99] 16/5/2022 15:18

Thanks very much ! @13759113
So surely “non-payment of interest for a period of 14 days“ will be an absolutely clear, indisputable Event of default! (You generally can’t use a vague ‘special provision‘ to claim exemption from a specific and precise one).
On that date if nothing else has happened, Vaughan gets copy of my email by registered post!
Would still be obliged for any pointers to the precise text relating to default interest (Jonnyhatesrap sets store by this: he also mentioned it on 7 March this year)

[135791113] 16/5/2022 14:09

From the prospectus...

An event of default is a breach by the Issuer or either of the Guarantors of certain
provisions in the terms and conditions of the Bonds. Events of default under the
Bonds include non-payment of interest for a period of 14 days, breach of other
obligations under the Bonds or the Trust Deed (which breach is not remedied within
30 days), defaults under other debt agreements for borrowed money of the Issuer,
either Guarantor or any of their respective subsidiaries subject to an aggregate
threshold of £1 million and certain events related to insolvency or winding up of the
Issuer, either Guarantor or any of their respective subsidiaries.


So I read that as them having 1 month from due date to repay before being deemed in default, as "other obligations under the Bonds of Trust Deed".

[fastcat99] 16/5/2022 13:52

The first thing is to get an objective recognition that the bond is in default - preferably from Wasps Finance (or the Guarantors, or the Trustee - I fear the latter are a complete waste of space, but you never know!), but if necessary, recognition of default from LSE, itself.
Can we all apply ourselves to this one key issue ? - it is both important AND urgent!

[fastcat99] 16/5/2022 13:52

The first thing is to get an objective recognition that the bond is in default - preferably from Wasps Finance (or the Guarantors, or the Trustee - I fear the latter are a complete waste of space, but you never know!), but if necessary, recognition of default from LSE, itself.
Can we all apply ourselves to this one key issue ? - it is both important AND urgent!

[135791113] 16/5/2022 13:36

I don't think they will default (ie not pay) or try to negotiate a lower settlement. Doing so would trigger a lot of consequences including the bondholders taking charge of the stadium, which with the rent from CCFC, Wasps and Wasps netball is worth comfortable in excess of £35m. For now lets give them the benefit of the doubt and assume they are sorting out some paperwork on the DD. They have a month to repay before are deemed to be in default as I read it.

[a0002577] 16/5/2022 13:22

Largely agree CC2014 - the prospectus is here which should give you everything


tjere are 34 references to the word 'default' in the document.

[cc2014] 16/5/2022 13:07

The timing of the RNS on Friday was most strange.

When I read the RNS carefully I can see it was prepared in advance as if Wasps knew the bond would not be repaid, yet it didn't get released until very late in the afternoon when they would have known all day they hadn't paid the face value.

I might see this as everything was being run to the last minute and Wasps were still hoepeful of getting the cash even on Friday. On the other hand if you really thought you were getting the cash why prepare a statement in advance.


I still struggle to understand why Wasps did not simply roll the bond at an interest rate of say 8.5%.

I suspect there may be some issue in the background. Wasps say it's documentation and final due diligence but those words could be used very broadly, or perhaps not.