Mind my pub-economics, and correct where appropriate, but I suppose the premise of the bond is that investors get 12 interest payments before the bond matures in May 2022 and bond value is returned. If you want to sell (or buy) the bonds ahead of maturity you are bound by the value. I would have thought that as the number of forward interest payments reduces so will the bond value, but I'm not 100% sure as I guess bond value is also indicative of the markets confidence that it will be met. I suppose at the end of the bond, Wasps will need to raise another bond, or receive other investment to pay the bond off. Taking into account inflation, £35m might be a fair price for such a facility in 2022, or at least it will with my optimists hat on.
Over the course of the bond, Wasps need to ensure that the debt level is at a certain ratio against the combined value of the arena and AP share level, this should be pretty much nailed on with the evaluation of the Arena earlier in the year - unless there has been a significant amount of additional borrowing. The EBITDA (earnings before tax etc) also needs to be a ratio against finance costs, which I guess will be 2.2m per year on the bond plus any additional interest payments. This is the bit that I guess might be tight as I think it needs to be circa £3-4m (at a guess), it was £1.7 in the interim figures, so not far off and the second half of the season will have included the home play off and season ticket money.
Ultimately, they're still investing in the squad and changes are afoot regards ACL so figures crossed all is ok. Big investments such as training facility and new screens are not showing signs of appearing, however these will require significant capital investment without much (short term) revenue return. We have however managed to convince Daly to stay and have the money to get playing cover in. There are quite a lot of positives with the npower tie up and arena generator project and also new sponsorships. What we have achieved so far has also been managed alongside a disruptive tennant in SISU and no "big" stadium naming rights deal, so all in all the club appear to be doing OK. So, as you say Raggs, hopefully we will see something soon.
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