Wasps retail bond - Wasps Finance plc 6 1/2% 2022

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Comments

  • Selftrade have just contacted me to see whether I wish to vote for the revised terms and conditions (and receive my 0.2% sweetener). In the light of the recovery in the bond price over the last couple of weeks I see no reason to vote against.
  • As a holder having read the docs I have signed up to the consent solicitation.
  • I too have read and signed up. I thought the Coventry Telegraph articles very informative - Thanks Paddy. Barclays wretched Smart Investor did not advise me of the Corporate Event - they knew nothing of the RNS Number: 1253A - they asked "where had I got this information from?" and I referred them to this forum. I shall be pleasantly surprised if they manage to get my 0.2%.
  • I don't own the bonds but I think 0.2% is very small compensation for the breach.
  • The resolution has been passed today, Wasps have thanked their Bondholders for their support and the 0.2% consent fee will be paid by them no later than 26 January 2018.
  • note the bonds are back to just shy of par - will stick with them
  • Could be a very bad decision - No accounts have yet been published, much later than the usual date. I don't own these bonds due to the high risk, not worth the coupon rate.
    I too noticed that they had been edging up very gradually.
    Their half year (December) results are normally out by end of February, so year end are very late
  • has anyone received their .2% yet? and if so which stockbroker do you use?
  • Received mine via Selftrade on 30 January
  • The Company Secretary has recently resigned (not long into the job)
    Not a good sign, accounts still not published


    PARKER, John Charles Moore
    Correspondence address
    Ricoh Arena, Judds Lane, Longford, Coventry, England, CV6 6AQ
    Role RESIGNED
    Secretary
    Appointed on
    30 March 2016
    Resigned on
    28 February 2018
  • Still no sign of any audited accounts.

    Wasps Holding last filed accounts are y/e March 2016, Wasps Finance June 2016, both now overdue at Companies House. As far as I can see every statement issued since then has been unaudited.

    Its interesting that the requirement to deliver accounts to the Trustee within 4 months of y/e was waived in the recent consent solicitation but no new date was inserted. I think 4 months is also the deadline for listing purposes too but perhaps someone can confirm that.
  • Remarkable as you say for a listed security!
  • It appears that PWC have resigned as auditors following the error in the 2017 accounts with the results to be released tomorrow or Friday.
  • Oh dear see price fallen out of bed this morning some 8% or so and would appear to be heavily sold volumes.
    PWC resigned or maybe pushed/ushered out of door ?
  • Further to the above-announcement and accounts due today.
  • It appears most volumes of trades don't appear on screens these days, on ORB bonds, to move the price 6 points a lots of bonds must have been sold.
  • Paddy you're right i traded quite a large chunk of another bond ( ORB ) yesterday and no report of trade anywhere that i can find. Think private retail ORB investors like us are now more and more in the dark and its quite prejudicial to our interests.

    Ref Wasps on LSE site today they show 77300 traded at 92.42 and 25000 at 96.75 ( HL has that trade as a sale ), current spread 90.5-93.80 so quite a drop over 2-3 days. Lets see what the accounts/news looks like later today.
  • Still no sign of any news RNS/other but see that 100,000 were sold at 90.70 and are now bid at 89.50 (Ref LSE ). Buying opportunity soon ? ( don't think i'm brave enough ! ).
  • Report now issued - includes a comment in Wasps Holdings that auditors found evidence of falsified accounting entries.
  • Stock even lower now 85.00 bid. Presume the accounts/comments are pretty downbeat but i can't find them yet.
  • http://www.wasps.co.uk/docs/default-source/Bonds/wasps-finance-plc-fy17-final-signed.pdf?sfvrsn=0

    hmmm...The Directors consider this to have been an isolated instance, have addressed the matter directly, and consider
    that the measures put in place provide additional controls to prevent such an occurrence.
    In order to assess the adequacy of the financial facilities available to the Group, the directors have prepared
    financial forecasts for the 15 months from the date of signing of these financial statements, together with a
    higher level plan. These forecasts show that the Group is dependent upon the financial support of its
    shareholder to remain within its committed lending facilities, and to meet the financial covenants associated
    with the Retail Bonds.
    The directors are satisfied that existing shareholder support will continue to be forthcoming. The directors of the
    Company have obtained a letter of support from the shareholder outlining a continued commitment to the
    Group.

  • Accounts for Wasps Finance Plc can be found on the Wasps website under your club then bonds-

    http://www.wasps.co.uk/your-club/bonds/secured-bonds

    In addition to the accounts there is the information that Price Waterhouse as auditors have been replaced by Mazars for future years.

    The accounts failed to meet the Companies House deadline.



  • Thanks John for the link, and pretty much read it all. So it all still revolves around one man and £1.1million-the money isn't that significant but the hub is the one man and his promise. This is what bond holders have always lived with /known so i don't see a massive shift except for the capital injection being shown as income. Given that the arena is the pledge then we have two factors- true value in a ' fire sale' of the arena and the trustworthiness of a pledge for 15 months by one man.
    Please correct me if i am wrong anybody, maybe i am missing something here. I am not sure if i would bet the house on a puchase of stock but at around 85 they would look a reasonable gamble.
  • I would think there is more down side than upside, the promise is not a guarantee (is that right?), I do agree that most of the current issues where known about before the price sell-off, so in that sense the sell-off is an over-reaction, but on the other hand the price recovery towards par was a puzzling.
  • A promise is not a guarantee but it does depend who's giving it. ! I notice the wording used is a bit precautionary so it's a bit 'with the wind behind us' and 'if all things go well/to plan'-well they don't and the wind might be a gust.
    Think you're right Paddy above par was fanciful but i think 85( middle ) was a bit cheap. I tried to buy at 86 with no luck-the spread is wide and the best would have been 88.5 so left it for now.
  • The only corporate bond which could be very adversely effected should the Covid-19 virus take hold in the UK is WASPS (lack of major exhibitions for perhaps a year or two)
    Are there any other ORB bond which could similarly effected?
  • UK has had 8 out of 9 recoveries, even in China, the recovery/mortality has been steadily improving, i mean at some point you have to move on : )
    https://en.wikipedia.org/wiki/Template:2019–20_Wuhan_coronavirus_data

    look at the Chinese, they still want to hit their original targets - https://www.bloomberg.com/news/articles/2020-02-16/global-economic-policy-direction-now-hinges-on-china-s-next-move
  • shaunm-maybe Alpha too given I guess but not certain that a lot of students could be from the far east. ?
    arjungaur- yes i read that too improving trend,let's hope it continues.
  • edited February 17
    it's not if the students are from far east, it's if anybody they are in contact with have been exposed in some form to the original bats, skin colour is just melanin, black/brown/yellow/white, we are all same sub-species, in fact it's very easy to recognise as Homo sapiens is the only extant human species, let's not confuse each other with Neanderthals and Homo erectus - https://en.wikipedia.org/wiki/Homo_sapiens
  • Sussexmade,
    Yes worth a review, however Chinese students could eventually get into Internationally recognised Quarantine areas for 2 weeks in order to facilitate to their travel to Universities etc
    Unite student accommodation could also be hit, but I suspect maybe longer term like Alpha

    Arjungaur,
    The nearest we have to Copid-19, is Spanish Flu, which lasted 3 years.
    This flu outbreak is very serious.
    Have a look at Flightradar24 to see the number of aero-planes that could be transporting the flu around the world!
    The indication last weekend is that the professionals (Medical disease) don't believe it be controllable.
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