Wasps 22 Discussion Threads

[mjl4212] 29/7/2022 15:46

First post, so apologies for any errors.
I'm a WAS1 bondholder holding £3k Bonds & I've been following this thread since March.

Given the Opaque/ Last Minute Communications so far, does anyone have any confidence that Wasps Finance have the ability to a) solicit consent in the first place & b) give any clear directions as to companies ability to pay.

At the very least, I would want a significant increase from the existing interest rate to take account of increased risk. I don't think it will be forthcoming.

[fastcat99] 29/7/2022 15:37

As an absolute minimum, there must be transparency on how and exactly when the Bonds were delisted in the first place:

the LSE announcement on May 17 was categorical that this came "at the Issuer's request", but not WHEN that request was made

on 30 June, the Trustee stated "In terms of the de-listing of the Bonds from the London Stock Exchange, we have written to the Issuer to request that they reinstate the listing and UNDERSTAND THAT THEY HAVE REQUESTED that the LSE do that"

on 7 July, thincat reported the story with a slightly different nuance "On delisting, [THE TRUSTEE] thinks this may have been an automatic LSE action on the date on which the bonds should have matured, rather than a decision of the Issuer. He agrees that the re-establishment of a secondary market is helpful and to this end he has asked the Issuer to pursue re-instatement of the listing."


Due process and absolute legal consistency is really, really important

[fastcat99] 29/7/2022 15:22

NB there will/must be a Consent solicitation - as I predicted many, many months ago !!

- this gives a locus for bondholders to express views on 1) Delisting, 2) Opaque communications, 3) ambiguities regarding various Agents' responsibilities and their conduct since 13 May, 4) etc, etc

- and my repeated suggestion that these factors should all merit some (small) financial compensation

[ozzie_dog] 29/7/2022 15:20

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

[jumpman1] 29/7/2022 15:20

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.

[fastcat99] 29/7/2022 15:00

hxxps://www.londonstockexchange.com/news-article/market-news/update-on-proposed-redemption/15563541

[l2s] 29/7/2022 13:11

Not that it helps but checking on the last two announcements the 13 May one was issued at 3:41pm and the last one (30 June) at 11:37am. As I said - not that it helps!

[135791113] 29/7/2022 13:03

Probably will just say that discussions are ongoing, expected payment date is still 12th August. Not sure what else anyone would expect.

[fastcat99] 29/7/2022 12:50

@zzaxx99 the ridiculous thing is that we are nonetheless COMPELLED to "hold our breath" - why does this lame, devious management persist in tedious brinkmanship right down to the very TIME of day, and MEANS of announcement, in order to meet their OWN (arbitrary) deadline?? The LSE 7am convention has a lot to be said for it

[zzaxx99] 29/7/2022 12:34

I'm expecting another delay or other bad news today. They have "up to" today to announce, so if there were good news, I'm sure it would have been shouted from the rooftops before now.

I will be delighted to be proved wrong, but I'm not holding my breath

[bondholder] 27/7/2022 12:08

430 my guess lol

[mmoule] 27/7/2022 12:00

If there is an announcement at all on the 29th then given Wasps track record it will no doubt appear at about 3 in the afternoon . And say absolutely nothing - again.

[dandigirl] 24/7/2022 18:51

It’s squeaky bum time.

[barondene] 14/7/2022 09:23

Quote:
kentwasp1

Quote:
Heathen
I am am informed, by someone who is highly competent in these matters, that the bondholders and the fans have nothing to be concerned about. Apparently it is not uncommon for things like this to happen.
In the meantime, chill out, enjoy the sunshine and enjoy a cold beer or two.



I had to smile at this magnificent insouciance. We've lost £60m as a business since moving to Coventry, defaulted twice on bond repayments, lost our auditors potentially over issues on going concern opinions, have no new business plan that reverses annual £10m losses, which will get worse as rugby attendances collapse, our bonds are the first to potentially default after being listed.
I desperately want Wasps to survive, but if you were HSBC and being asked to mortgage the CBS, looking at the unsustainable massive ongoing losses, which the Wasps management have made no public shared plan on how to stem, why would you loan money to a business that has no positive cashflow to service debt?
It's looking so bad, my bet is on a collapse and bidding for someone to take on the Wasps name and hopefully survive, likely only to be in the original fans base within M25 circle.
I love sang froid but this is a case of so many fans here ignoring some significant glaring financial warning signs. Like the Black Knight and his flesh wounds in Monty Python.
Love to be wrong of course.


Bit harsh - all they need is a boyzone out of retirement weekend and problems all sorted apparently

hxxps://www.rugbynetwork.net/boards/read/s96.htm?98,17095444,page=18

[dandigirl] 14/7/2022 09:03

aidenabettin: You have lost your way. This is a WASPS board not the NHS. Please go contaminate another board with your nonsense and leave this one to posts on-topic. You are hereby filtered.

[aidenabettin] 14/7/2022 08:27

The NHS have been ordered to clear all beds by the 30th September to cope with long covid(caused by vaccination imo) and the next variant..Millions will suffer if they were forced to have the jabs under draconian mandatory vaccination rules along with those who incredibly volunteered. Covid will hit the vaccinated worse than the unvaccinated.GOOD LUCK TO YOU ALL

[bondholder] 14/7/2022 08:19

Digging around the accounts showed around 13m valuation which I think was based on the price paid by CVC for a minority stake in 2018.

[bondholder] 14/7/2022 07:59

Interesting discussion. I'd forgotten about the premiership shares which are also charged as security. Any idea of the value of these ?

[barondene] 13/7/2022 21:37

hxxps://forum.leicestertigers.com/viewtopic.php?f=1&p=826913

[barondene] 12/7/2022 18:24

It is not a coincidence- they have quoted 29 July as an update. The local authorities do not want any embarrassing news to come out while the games are on. This had been local news from the day it was announced.

[l2s] 12/7/2022 18:00

I've just realised the significance of the 29 July for an update on progress - As from that date and up until 6 August the Coventry Arena and Stadium will be one of the venues for the Commonwealth Games (Rugby, Judo and Wrestling). Will some of the final discussions about re-financing take place against a backdrop of sporting accomplishment culminating in a full repayment of our bonds 6 days later?

A response of "Dream on!" is anticipated.

[cesareborgia] 12/7/2022 16:52

I would like to be clear on what goonerbob has told us.
The issuer is a wholly owned subsidiary of a company that is 98% owned by Moonstone Holdings which is owned by Derek Riachardson. The guarantors are Wasp Holdings Ltd and Arena Coventry Ltd both of which are owned by Moonstone Holdings which is owned by Derek Richardson. If this is correct surely the only person anyone should be talking to, but especially the Trustee, would appear to be Derek Richardson, the individual who created this particular circular bond guarantee. Does anybody know if the Trustee is talking to Mr Richardson?

[goonerbob] 12/7/2022 16:02

Given the facts in the Bond prospectus, Derek Richardson is personally liable via his Moonstone holdings ltd which owns 98% of Wasp Holdings ltd and 100% of Wasp Finance Plc(Bond Issuer).
ACL is the company through which all the business operations of the Ricoh Arena (the “Arena”) in Coventry are conducted. ACL is a wholly owned subsidiary of Wasps Holdings. The Issuer is a special purpose company established by Moonstone Holdings Limited (Malta) to raise money for use by Wasps Holdings and ACL. The Issuer is a wholly owned subsidiary of Moonstone Holdings Limited (Malta).

[goonerbob] 12/7/2022 15:42

hxxps://www.wasps.co.uk/media/3073/wasps_prospectus2.pdf

The Guarantors’ legal and commercial names are Wasps Holding Limited and Arena Coventry Limited.

B.18 Guarantee
The Guarantors will each guarantee the payment of all sums payable by the Issuer in respect of the Bonds. Therefore, if the Issuer fails to make payment due to the Bondholders in respect of the Bonds, the Guarantors will be legally bound to make such payment.

C.8 Rights attached to the Bonds
Status of the Bonds and the Guarantee The Bonds constitute secured obligations of the Issuer. The Bonds will rank pari passu (i.e. equally) and without any preference among themselves. The guarantee of the Guarantors (the “GuaranteeR21;) constitutes a secured debt obligation of each of the Guarantors.

Security
The Issuer, the Guarantors and Arena Coventry (2006) Limited (“ACL2006̶1;
which is a wholly owned subsidiary of ACL) will grant security for the Bonds on the Issue Date. The benefit of the security will be held on trust, by U.S. Bank Trustees Limited (the “Trustee”;), for and on behalf of itself, the paying agents under the Bonds, Elavon Financial Services Limited, UK Branch (the “Account Bank”) and the Bondholders. The security includes a legal mortgage (explained in more detail below) granted by ACL and ACL2006 over their title to the Arena in Coventry, a mortgage over the whole share capital of ACL, a mortgage over the whole share capital of ACL2006,

A ‘mortgage̵7; provides security over the specified asset(s) and/or other interests of the person giving the security by transferring legal title to those assets and/or other interests from the mortgagor (i.e. the company granting the mortgage) to the mortgagee (i.e. the Trustee acting on behalf of the Bondholders), along with the right to sell those assets and/or other interests if there is a default in obligations due under the terms of the Bonds (for example, if the Issuer were to fail to make a payment of interest when due under the Bonds).

Events of default
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),
The security granted over the secured assets shall become enforceable, by the Trustee for and on behalf of itself, the paying agents under the Bonds, the Account Bank and the Bondholders, at the Trustee’s discretion upon an event of default occurring

Trustee acting on behalf of the Bondholders U.S. Bank Trustees Limited

Fair value as at 31/3/2021 - £52,400,000
hxxps://www.wasps.co.uk/media/8033/ricoh-arena-valuation-report-summary.pdf