Premiership Rugby side London Wasps said that it has raised £35M ($53.4M) from its "retail bond" scheme launched last week, according to Les Reid of the COVENTRY OBSERVER. The club said it will "now use the money to pay off debts" including around £13.4M ($20.4M) owed to Coventry City Council from a taxpayer loan to the Ricoh Arena company it bought last October. At least some of its loan debts -- which include to Owner Derek Richardson -- will be transferred to bond holders, who were asked to invest a minimum £2,000 ($3,050) in return for 6.5% annual interest payments. Wasps will have to pay back more than £2M ($3.05M) in interest payments each year (COVENTRY OBSERVER, 5/6). In Coventry, Simon Gilbert reported it was the "first ever retail bond scheme to be issued by a sports club." Wasps said that the offer "had been oversubscribed after launching the scheme on April 27" and on Wednesday closed it a few hours early. Wasps CEO David Armstrong said, "We are delighted at the success of our debut retail bond which was fully
subscribed, and at reaching our maximum target of £35 million ($53.4M)" (COVENTRY TELEGRAPH, 5/6). The BBC's Kevin Peachey reported the bonds will be guaranteed by the two key operating companies,
Wasps Holdings and Arena Coventry Ltd., including the Ricoh Arena. Interest
will be paid on Nov. 13 and May 13 in each year with the investment
due to be paid back in full on May 13, 2022. Trading in the bonds is
earmarked to start on May 14 (BBC, 5/6).
