So what's the thinking on the Bond?

[InBetweenWasp]

I don't think it's the risk level around the bond that is broadly the problem, it's the lack of explanation(s) as to why the continued delays.  We'd assumed that there was legal governance in place that meant that no comms prior to a Stock Exchange could be released or shared.  But with the bond being delisted that doesn't really seem to actually be a thing.

There's definitely a lot of noise on the investor board.  But like other IBBs, there's often a very vocal few who aren't necessarily reflective of the wider views.  There's also clearly a handful of CCFC fans on there deliberately being provocative.

I'm not entirely sure that Gilbert's article and revelations were as helpful or insightful as he and the SBT lot may have thought.  Lots of people are outraged, but not really sure what for as no one has been able to provide any factual information other than:

- Bond is overdue for £35m repayment
- Funding to repay bond is not complete
- We've applied for a Regional Government Grant

Beyond that, it's all hearsay at the moment and despite lots of things being supposedly widely known and in the public domain, no-one seems to be able to find anything to support any of the hearsay.

As with lots of these things, the truth is likely somewhere in the middle and whilst unsettling will likely not as bad as rumoured elsewhere and likely not as good as some of the blind faith that some of us have (including me).

I still think there's an under-utilised asset there.  Traditionally it's only ever had a single tenant, it's now got two.  I think it was 2020 that had the busiest scheduled year for events, unfortunately, they were largely cancelled. 

Once we've had a couple of years of BAU we'll be able to get a proper handle on whether the business is going in the right direction or not.  Let's hope we can get those couple of years to find out.

The one thing that Dehuminiser has said on the other board that makes sense is that the cost of repayments for financing to purchase the Stadium in the first place may mean that the economics of the business never turn out to be what they were originally thought.

[waspymatt]

Last week, the rugby club served a “notice in the event of default”, informing investors that it hoped to agree to refinancing terms with HSBC by August 13. It said it would update bondholders no later than July 29.

That's tomorrow....fingers crossed!

[NellyWellyWaspy]

Last week, the rugby club served a “notice in the event of default”, informing investors that it hoped to agree to refinancing terms with HSBC by August 13. It said it would update bondholders no later than July 29.

That's tomorrow....fingers crossed!

That won't happen ...

[Shugs]

Update in summary. Refinancing not complete. Redemption now won’t happen in the previously communicated timescales. HSBC still the lead refinanced but others now being sought as well as asset improvements. Consent process will be underway in August (normally means seeking mutual consent to alter original terms with bond holders).

[Neils]

Oh dear!

[Heathen]

Wasps seeking to relist the bond while the discussions continue.

[Rossm]

Report from Bobby Bridge.

Wasps make £35m bond admission and seek 'different refinancing options'

https://www.coventrytelegraph.net/news/coventry-news/wasps-make-35m-bond-admission-24626064

[Shugs]

Does anyone closer to the clubs management have any idea how they are now viewing this. I think it’s been assumed it’s a matter of time till sorted - is that still the case?

[Neils]

Posted on DW by Grendel (SBT) there appears to be an article in the Times apparently about the bond and SISU - can anyone post it here?

[Come on Dai Young]

I can't access it myself, but here's the link in case anyone else can: https://www.thetimes.co.uk/article/hedge-fund-puts-coventry-city-in-play-xx95tnrwj

This is apparently an excerpt:

The Times understands that Sisu, a Mayfair-based hedge fund, is considering a sale of Coventry City, believing that Wasps’ distress may present an opportunity for a third party to make an offer for the club and, at the same time, bid to acquire the lease for the arena. A senior source said Sisu was “open for business”. Sisu itself is unlikely to make an offer for the stadium because of its troubled relationship with Coventry city council, which owns the freehold.

[Neils]

I can't access it myself, but here's the link in case anyone else can: https://www.thetimes.co.uk/article/hedge-fund-puts-coventry-city-in-play-xx95tnrwj

This is apparently an excerpt:

The Times understands that Sisu, a Mayfair-based hedge fund, is considering a sale of Coventry City, believing that Wasps’ distress may present an opportunity for a third party to make an offer for the club and, at the same time, bid to acquire the lease for the arena. A senior source said Sisu was “open for business”. Sisu itself is unlikely to make an offer for the stadium because of its troubled relationship with Coventry city council, which owns the freehold.

Thanks for that bit.

[Come on Dai Young]

I hope this works: https://archive.ph/o4W0P

[Neils]

I hope this works: https://archive.ph/o4W0P

Yes thanks for that. Don't really blame them.

[Come on Dai Young]

You're most welcome, Neils. (Full disclosure: I nabbed the link from Sky Blues Talk, of all places!)

[Shugs]

So the football club don’t want the lease as they know they are on to a good deal and have always taken out rather than putting in. They’ve realised they need Wasps or someone else to do the heavy lifting in terms of making it work. Two major stumbling blocks to their aspiration 1) It won’t come cheap as they’ll want all their loans to the club (masquerading as investment in it) repaying and most fundamental of all 2) Wasps have shown no inclination to sell.