Wasps close to agreeing deal over £35m debts

Wasps had promised to consult bondholders before the end of last month

Wasps have told investors they are close to securing funds to repay some of their multimillion-pound debts.

Bondholders are owed £35m after investing in a scheme to allow the rugby club to raise money for the business and pay off debts, shortly after it bought the CBS Arena in 2014.

Those investors should have been repaid in May.

Wasps Finance PLC said it had made progress and talks with a lender were "at an advanced stage".

It said it had "received an offer which would see the bonds fully redeemed on completion of this refinancing".

However, in a statement, it added it would continue to work up plans to ask bondholders for permission to alter the repayment terms should the refinancing deal fall through.

The club had promised and failed to consult bondholders before the end of last month over the date and terms of repayment.

Wasps bought the CBS Arena - then known as the Ricoh Arena - in 2014

The bond debt is one of many financial issues facing Wasps.

It emerged last month the club was in discussions with HMRC over unpaid tax, and the BBC has learned it is also juggling the repayment of a Sport Survival Package loan, issued by government during Premiership Rugby's struggles with the impact of Covid.

It has also been revealed Wasps failed to pay Coventry City Council an agreed fee to take over the lease of car park land next to the arena, which was due to be developed into a hotel.

That meant a £12.2m loan agreed between the West Midlands Combined Authority and Wasps owner Derek Richardson to fund the development was not able to be drawn down.

Recover debt

The BBC has learned that, with concern over a lack of communication and the failure to meet the repayment date, bondholders are organising themselves behind the scenes with the help of their trustee, US Bank Trustees Limited.

They are also working towards calling an Extraordinary Meeting to discuss their options - including potentially instructing the trustee to recover the debt.

Ten per cent of bondholders would be required to request the meeting and it is understood they are confident of meeting that total.

The bond debt was primarily secured against the value of the arena.

One bondholder, who did not want to be named, said: "I detect huge determination from other bondholders to recover all or as much as possible of their investment.

"There is a good line of communication with the trustee who will inevitably receive instructions to seize the assets of Wasps Group, which includes the stadium and ownership of the rugby club.

"This could take place before Wasps conclude any refinancing package. Wasps' continued refusal to communicate with the bondholders in any meaningful way simply adds insult to injury."