A three hours early close is not much but I think you are being too cynical. The target size was £25 to £35 million and they have said the size will be a minimum of £30 million, so that is not a bad result. I expect they will get close to £35 million (that is just a hunch). Also because of the general election they have given themselves a very short sales period compared with most retail bonds. If you exclude bank holiday Monday the issue subscription period has only been open for 7 business days.
There is the question of the large sell off in Gilts but a 6.5% coupon gives a large cushion and the correlation between Gilts and ORB bonds is not that strong.
I nearly always put in an order as early as possible, and then in the light of comments and my own consideration, modify or cancel accordingly. (It costs nothing anyway and is easily done)
Bond007, Thank you for that piece of information, didn't realize one could cancel before closure. I would like to thank other contributors, and particular Oliver without whom we would be "lost". Apart from this & Stobart issue (& possibly EROS), most of the "New Issues" discussions have had a positive feel. Hopefully my views on this issue are ill-founded and that the "Wasp" issue becomes part of a well balanced portfolio for the many investors who decided to invest. Looking forward to the next new issue.
Just received my allocation of the Wasps bond and it is 7% less than I applied for. I guess they were oversubscribed but this is the first time I have ever had an order reduced in the bond market.
Selftrade have told me that my application will be reduced to 88.95% of the amount applied for (taken to the nearest £100). Presumably the oversubscription explains the current price being 100.25-101.00 on the ORB. Several trades going through at 100.75.
According to AJBellYouinvest 'All applicants received the minimum of GBP 2,000. Thereafter, allocations were scaled back to 76.3216% of considerations invested above the minimum. This calculation was applied across the board to all applicants'. Can anyone verify they have been treated in the same way?
Thank you for your reply Tightwad. The figures I supplied were based on more than one account; I can confirm that I also applied for 5000 and received 4200 in a SIPP. In future I will be in no rush to place orders, obviously first come first served does not apply!
I applied on 28th April for 10000 and received 9300, so 91.25% of the amount over the 2,000. AJBell/Youinvest clearly wrong but then they can't get the pension payments right from my SIPP either. Interesting that this new issue from Wasps is generating more comments than even the Eros one.
The key important figure, which I think should be studied is the middle line within the cash-flow statement page 26 "Net cash flow from operating activities is -£6,316,981" Can anybody see any comment indicating the management will be turning this into a positive figure for the future?
Price has been erratic this week. a low of 97.5p and now at 99.5p. Is this the impact of the accounts? There's been three large buys today for £1,3&4m so am assuming all is well here. Any thoughts?
Could it be the "post world cup" effect? TV and crowds seem to have been ahead of what was expected. Investors feeling that crowds and therefore receipts will be up over the next few years?
The thing is the offer price was at 102 - 103 before they published their latest accounts. Now trading above par once more so I guess it's down to an initial reaction to the accounts & possibly turns out to be a missed buy opportunity
Oliver to be congratulated and thanked for his followup in BotW. As a local (Leicester Tigers} supporter I can confirm that Wasp's remove to Coventry seems only to have done them, and the game, good. As to the bonds and the financial analysis, thank you Oliver.
I suspect that with the latest terrorist atrocities that the Coventry Arena has had to beef up it's security activities, which I assume will be at their cost. Big question is that whether attendance numbers will be effected, which may effect their income? Other big venues must be in a similar position
I admit I have not examined the various notices in minute detail but it does seem to me that the need for the 'consent solicitation' is basically technical. The auditors were not happy with the way the accounts had been drawn up and as a consequence certain bond terms and conditions had been breached. There is no suggestion that the interest paid on the bond needs to be withheld or reduced or that the maturity date needs to be amended. The only real impact on bond holders is that they can get a 'consent' fee of 0.2% for agreeing to the changes to their terms and conditions. The sudden drop in the bond price suggests something more but may just have been a knee jerk reaction. I'm happy to revise my view if anyone can enlighten me as to what I've missed.
The two words "accounting irregularities", normally have very serious consequences for a company, so I wouldn't be too complacent about it. On the plus side PwC seems to have signed off on the accounts, it seems to me that the ultimate investor was naive to think he could get away with fake profits. I would worry about if the business is a "going concern", on the other hand I guess the security is decent. I haven't invested in this or looked into it in detail, but it is an unwelcome bit of news before Christmas.
I do have a small stake. Accounting Irregularities doesn't sound too good, on the other hand the stadium is valued at £60m, the bond outstanding is £35m. If they were forced to sell it there is some wriggle room. My bigger concern is available cash to pay the coupon.
Does anybody know when Wasps will be (or should be) publishing their annual results? For the previous 2 years , they had them published 30/31st October Any LSE regulations re submitting their accounts to an agreed timetable?
@shaunm , maybe they haven't been published due to the "accounting irregularities" d elaying sign-off. It seems foolish in the extreme to try and pass off a capital injection as a profit to avoid breaching bond covenants. I am not an accountant, but directors/manager can find themselves in serious trouble ( eg Tesco) for intentionally inaccurate accounts.
Honesty would most definitely have been the best policy.
Comments
There is the question of the large sell off in Gilts but a 6.5% coupon gives a large cushion and the correlation between Gilts and ORB bonds is not that strong.
I would like to thank other contributors, and particular Oliver without whom we would be "lost". Apart from this & Stobart issue (& possibly EROS), most of the "New Issues" discussions have had a positive feel. Hopefully my views on this issue are ill-founded and that the "Wasp" issue becomes part of a well balanced portfolio for the many investors who decided to invest.
Looking forward to the next new issue.
I guess they were oversubscribed but this is the first time I have ever had an order reduced in the bond market.
Can anyone verify they have been treated in the same way?
In future I will be in no rush to place orders, obviously first come first served does not apply!
Interesting that this new issue from Wasps is generating more comments than even the Eros one.
http://www.wasps.co.uk/docs/default-source/default-document-library/wasps-holdings-limited-30-06-2015.pdf?sfvrsn=2
Be interested in a Financial expert's view!
Can anybody see any comment indicating the management will be turning this into a positive figure for the future?
However the consolidated figure on page 25 shows a positive figure of £4,401,646
Very difficult to understand!
There's been three large buys today for £1,3&4m so am assuming all is well here.
Any thoughts?
Just an idea.
Wasps Finance Plc is pleased to publish their interim results for the six-month period to 31 December 2016.
http://www.rns-pdf.londonstockexchange.com/rns/8399X_-2017-2-24.pdf
Not the best set of accounts
Cash-flow not good
Big question is that whether attendance numbers will be effected, which may effect their income?
Other big venues must be in a similar position
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/WAS1/13474846.html
http://www.telegraph.co.uk/business/2017/12/21/wasps-overstates-profits-amid-accounting-irregularities/
The sudden drop in the bond price suggests something more but may just have been a knee jerk reaction. I'm happy to revise my view if anyone can enlighten me as to what I've missed.
https://www.fixedincomeinvestments.co.uk/discussion/topic/wasps-finance-plc-6-50-bonds-130522/
For the previous 2 years , they had them published 30/31st October
Any LSE regulations re submitting their accounts to an agreed timetable?
elaying sign-off. It seems foolish in the extreme to try and pass off a capital injection as a profit to avoid breaching bond covenants. I am not an accountant, but directors/manager can find themselves in serious trouble ( eg Tesco) for intentionally inaccurate accounts.
Honesty would most definitely have been the best policy.
There is a decent breakdown of the last accounts here:
http://www.coventrytelegraph.net/sport/rugby/wasps-struggle-repay-35m-ricoh-12759835