Wasps Finance gets consent to modify 6½% secured bonds due 2022

By Taylor Fox

New York, Nov. 12 – Wasps Finance plc received more than the requisite amount of consents from bondholders to modify certain terms and conditions on £35 million 6½% secured bonds due May 13, 2022 (ISIN: XS1221940510) guaranteed by Wasps Holdings Ltd. and Arena Coventry Ltd., according to a notice.

The bondholders meeting was held via video conference at 6 a.m. ET on Nov. 12.

The extraordinary resolution was passed, and the amended and restated trust deed will shortly be executed.

As previously reported, the initial meeting, held on Oct. 29, was adjourned for lack of quorum.

The issuer and guarantors asked bondholders to modify certain terms and conditions of the bonds as a result of financial stresses related to Covid-19.

The company said the proposals will help the group withstand the impact of Covid-19 and are aimed at restoring its financial position and facilitating its plans to refinance the bonds on or by their scheduled maturity in May 2022.

Specifically, Wasps proposed the following:

• To amend the financial covenants under the bonds to take into account the significant impact of Covid-19 on the Wasps Group and the ongoing financial impact of operating in a Covid-19 environment;

• To enable the Wasps Group to access additional liquidity that is required to allow it to continue to trade as a going concern while government public health restrictions to control Covid-19 remain in place;

• To enable the Wasps Group to improve its financial strength through the acceleration and implementation of its development plan for the Ricoh Arena and surrounding land and facilities; and

• To facilitate the Wasps Group’s plans to refinance the bonds on or by their scheduled maturity date in May 2022.

Holders who voted in favor of the extraordinary resolution were eligible to receive a 0.2% consent fee.

Aldwick Advisory Services Ltd. (ian.dixon @aldwickadvisory.co.uk, attn.: Ian Dixon, +44 77 2008 6993) is the solicitation consultant. Lucid Issuer Services Ltd. (wasps@lucid-is.com, +44 20 7704 0880, attn.: David Shilson) is the tabulation agent.

U.S. Bank Trustees Ltd. is the trustee.

Wasps Finance is a subsidiary of London Wasps Rugby Football Club Ltd.

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