Wasps Launches Retail Bond Initiative
Premiership rugby club, Wasps, is aiming to become the richest rugby club in the world after becoming the first sports club to launch a retail bond listed on the London Stock Exchange, expected to raise up to £35m.
The move could see the club, which recently relocated from High Wycombe to the Ricoh Arena in Coventry, overtake French giants Toulouse in terms of revenue.
“We expect to be in that position either at end of this season or next season,” said David Armstrong, group chief executive of Wasps.
“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.”
Wasps Finance plc, a special purpose vehicle set up for the purposes of issuing the Bonds, is offering the 6.50% Secured Bonds due 2022, available to buy until 5pm on 6th May.
The Bonds will be guaranteed by the two key operating companies, Wasps Holdings and Arena Coventry Ltd, including the Ricoh Arena. The Bonds pay a fixed gross rate of interest of 6.50% per year until 2022.
The minimum initial investment is £2,000, and can be bought and sold in multiples of £100 thereafter, though the actual price you pay or receive per Bond may be higher or lower than this, depending on the market price of the Bonds at the time.
The Bonds are expected to be admitted to trading on the Order book for Retail Bonds of the London Stock Exchange on 14th May, when investors will be able to check the current trading price on the London Stock Exchange website and buy and sell their Bonds in the open market.
The retail bond initiative was successfully used by The Jockey Club in 2013 in an effort to raise funds for the development of Cheltenham Racecourse.
The Jockey Club raised £24.7m, exceeding the company’s original target of £15m, with returns split between 4.75% cash and 3% in racing rewards.
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