One of Europe’s leading premiership rugby clubs has launched a 6.50% Secured retail bond due 2022.
Wasps, which owns the Ricoh Arena in Coventry (a leading sports, exhibition, conferencing and events venue) is seeking to raise between £25m and £35m.
Wasps say this is the first time a sports club has launched a bond of this type. The Bonds will be secured over Wasps Holdings and Arena Coventry Limited, including the Ricoh Arena, and will trade on the Order book for Retail Bonds of the London Stock Exchange (it is not a mini bond).
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. The minimum initial investment is £2,000, multiples of £100 thereafter and it is available to buy until 5pm on 6 May, 2015.
Group Chief Executive of Wasps David Armstrong said: “We are delighted to announce the launch of Wasps’ debut retail bond, which will be tradable on the London Stock Exchange’s Order Book for Retail Bonds and is the first transaction of its kind for the sports industry.
“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 of 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.”
The Ricoh Arena includes a 32,600-seater stadium and a concert venue of 40,500 capacity. It has hosted such acts as Coldplay, Take That and Bruce Springsteen. It also has a 6,000sqm indoor facility that can host up to 12,000 people, plus a casino, two restaurants and a 121-room hotel.
A prospectus is available for viewing via the Wasps website. Authorised distributors are Barclays Stockbrokers, Redmayne-Bentley Stockbrokers, Selftrade and Shareview. Lead manager is Investec Bank plc.