Wasps Finance seeks to modify £35 million 6½% bonds due 2022

By Rebecca Melvin

New York, Oct. 6 – Wasps Finance plc began a consent solicitation for its £35 million 6½% secured bonds due May 13, 2022 guaranteed by Wasps Holdings Ltd. and Arena Coventry Ltd., according to a notice.

The issuer and guarantors are asking 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 is proposing 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 on-going 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.

The voting deadline is 5 a.m. ET on Oct. 27. A bondholders’ video conference meeting is scheduled for Oct. 29. At the meeting, bondholders will be asked to consider and pass an extraordinary resolution to amend the bonds.

Holders who vote in favor of the extraordinary resolution will be eligible to receive a 0.2% consent fee. Holders must deliver voting instructions by 5 a.m. ET on Jan. 17.

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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