Wasps rugby union club calls £35m bond mark
- Published
English rugby union club Wasps has reached its £35m target with the sale of its seven-year bond.
The bond, which will pay a fixed gross rate of interest of 6.50% a year until 2022, was on sale from 24 April to 6 May.
David Armstrong, the club's chief executive, said the response had been "very positive" and offered stability for the club's future.
Wasps play in the Aviva Premiership at the Ricoh Arena in Coventry.
The club moved to the 32,600-seater stadium from Adams Park, High Wycombe, in December 2014.
"The funds raised [from bond sales] will enable us to restructure our balance sheet and pay down our existing debt, including the loans we acquired with the Ricoh Arena," Mr Armstrong said.
"We now have a solid foundation for the long-term future of the club and look forward to the future with confidence."
Minimum initial investment in the bond was £2,000 - which, like any investment, has risks involved. There are plans for it to be tradable on the London Stock Exchange's Order Book for Retail Bonds.
The bonds will be guaranteed by the two key operating companies, Wasps Holdings and Arena Coventry Ltd, including the Ricoh Arena.
Interest will be paid on 13 November and 13 May in each year with the investment due to be paid back in full on 13 May, 2022. Trading in the bonds is earmarked to start on 14 May.