Wasps confirm further delay to repayment of £35m

Repayment of £35m raised by Wasps Group to buy Coventry Building Society Arena has been further delayed.

The redemption date for the bonds was due on May 13 but on that date a statement was issued informing there had been a delay as the bond was in the process of being refinanced.

It said that the revised date for the refinancing to be completed was on or before June 30.

A statement today says that repayment has been delayed until August 12 while a refinancing deal is finalised.

Wasps Group launched its plan in 2014 to purchase the stadium, then called the Ricoh Arena, with money raised through a first-of-its-kind bond scheme.

Costing £2,000 each, the bonds offered 6.5% interest every six months over their seven year period. The cash enabled Wasps Group to secure the arena from operating company ACL – jointly owned by the Alan Edward Higgs Charity and Coventry City Council.

Today’s official statement about the bond repayment said: “Further to the announcement on 13th May 2022, which stated that the Issuer had agreed, subject to final due diligence and documentation, the terms for the refinancing of the Bonds with a lending group that includes HSBC UK Bank plc as senior debt provider; the issuer is working towards completing this due diligence and documentation.

“The issuer now expects the refinancing to complete and redemption of the bonds at their nominal amount to take place on or before 12th August 2022.

“Bondholders will receive interest accrued for the period from 13th May 2022 until the date of redemption.

“The issuer will update on progress relating to the refinancing no later than 29th July 2022.”