Individual corporate bonds

chucknorris

AnotherJoe wrote: »

I wouldnt touch anything with a sports team, far to easy to go bust and then be bought for a pittance writing off all previous debts. I wonder where the £67M valuation for the stadium comes from? Is that as a stadium or bulldozed for flats?

The stadium is security for the debt, I don't know the exact details about the valuation.

duggan1

AnotherJoe wrote: »

I wouldnt touch anything with a sports team, far to easy to go bust and then be bought for a pittance writing off all previous debts. I wonder where the £67M valuation for the stadium comes from? Is that as a stadium or bulldozed for flats?

Ricoh Arena hosts a few concerts, and Coventry City FC play there, though that may not be long term.

Wasps themselves have been fairly rubbish this year and probably won't be playing in the champions cup next year. They might lose some high profile players as well as apparently no-one likes Coventry and the training facilities are from the 1950s.

brian1234

what about the £13.5m cash windfall from the sale of shares in premiership rugby to CVC? Bonds also secured on those and have a fixed charge over wasps bank accounts.

i appreciate the concerns about the profitability, industry, but are detractors factoring in the CVC cash?

newatc

AnotherJoe wrote: »

I wouldnt touch anything with a sports team, far to easy to go bust and then be bought for a pittance writing off all previous debts. I wonder where the £67M valuation for the stadium comes from? Is that as a stadium or bulldozed for flats?

A little aside. When I was even more stupid than I am now, I was convinced by another lay person to purchase shares ln Bolton Wanderers (Burnden Leisure) as they sought getting promoted to Premier League. I did buy and Bolton got promoted and within a few years of declining share value, they entered a recapitalisation plan which made my shares worthless.

jaybeetoo

duggan1 wrote: »

Coventry City FC play there

Not any more - they’ve moved to St Andrew’s

bd10

Provident Financial?

For my risk appetite, I stay clear off all banks. Too much negative dynamic going on, be it Metro's confusion over it's loans in its books, the structural decline of investment banking, retail banks having to reinvent themselves. Prime lenders cutting the tenors of their BT/zero credit cards, it's PF and alike left holding the bags if things go sour.

So, for a 4-year paper, this MTN in question has a high yield. Corporates like Nestle can borrow/issue at Libor +/- 0 or almost sovereign rates. That's the consequence of the corporate bond squeeze thanks to QE. But this relatively high yield reflects the relatively poor credit quality of the issuer which is according to Fitch a BBB with negative outlook. BBB is the lowest tier of investment grade. That'ts what you'd get for Russian government debt, for example.

Wouldn't touch them with a barge-pole. But that's just me.