Wasps aiming to raise tens of millions through retail bonds

COVENTRY rugby club Wasps is aiming to raise up to £35m through the issue of 6.5% sterling bonds.

The seven-year bonds will trade on the London Stock Exchange.

It is understood Wasps is the first sporting club in the country to offer such retail bonds, which have a minimum investment of just £2,000.

Wasps moved from High Wycombe to the Ricoh Arena in Coventry at the end of last year and  paid an estimated £20m to take over the ownership of the stadium. It acquired 100% of Ricoh Arena operating company ACL – jointly owned by the Alan Edward Higgs Charity and the city council, taking on ACL’s £14.4m loan from the council in the process.

Some of the money raised from its new bond issue is likely to be used to pay off that loan.
 
It is offering between £25m and £35m of bonds secured over Wasps Holdings and Arena Coventry Limited, including the Ricoh Arena.

Interest will be paid semi-annually on 13 November and 13 May in each year with the investment due to be paid back in full on 13 May 2022.

A special purpose vehicle, Wasps Finance plc, has been set up for the purpose of issuing the bonds.

Wasps’ group chief executive David Armstrong said: “The move to the Ricoh Arena was transformational for Wasps and our new home provides us with multiple income streams and the opportunity to create one of the UK’s premier sport, business and entertainment complexes, while offering sponsors and partners the exciting opportunity to get involved with the new second home of English rugby.

“This is another step in achieving our aim of creating a long-term sustainable business model.”