Wasps to pay back £13.4m Ricoh Arena council loan...
By Simon Gilbert, Coventry Telegraph
May 7 2015
..."within days".
Wasps say they will pay off the remainder of a £13.4m loan from Coventry City Council for the Ricoh Arena within days after raising £35million from investors.
Nick Eastwood, deputy chairman of the Premiership rugby club, has told the Telegraph that the loan will be paid off “sooner rather than later” after they successfully raised £35million via a bond sale scheme this week.
The scheme – the first of its kind for a rugby club – aims to pay investors interest of 6.5 per cent a year until 2022, paid twice a year for a minimum investment of £2,000.
Wasps closed the bond issue early on Wednesday after it became oversubscribed. The nature of the investors is yet to be established with figures still to be broken down – but the club says it expected to see “significant” numbers of fans and members of the general public as well as professional investors.
Part of the £35million will be used to clear the £13.4million city council loan, plus accrued interest.
Mr Eastwood also confirmed there was no financial penalty for repaying the council loan almost 20 years ahead of schedule.
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