Further issue of dollar notes
Jun 29, 2006 3:50 PM
R.E.A.Hldgs PLC
29 June 2006
R.E.A. Holdings plc ("REA")
Proposed further issue of 7.5 per cent dollar notes 2012/14 ("dollar notes")
REA announces that it has entered into an agreement with KBC Securities N.V.
("KBC") whereby KBC has agreed to use its reasonable endeavours to procure
placees for up to $4,100,000 nominal of dollar notes at an issue price of 92.5
per cent of par, payable in full on subscription. The redemption yield at the
issue price on 3 July 2006 will be 9.1 per cent.
The dollar notes now proposed to be issued (the "latest dollar notes") will form
part of a total proposed issue of $30,000,000 of dollar notes which are
constituted pursuant to a trust deed dated 12 September 2005 and made between
R.E.A. Holdings plc and The Law Debenture Trust Corporation plc. $23,972,281
nominal of dollar notes are already in issue. Of these, $4,972,281 nominal were
issued pursuant to a reorganisation of the company's former 4 per cent
convertible loan stock 2012 that became wholly unconditional on 12 September
2005 and the balance of $19,000,000 nominal was issued on 21 February 2006 as
consideration for the acquisition by the company of a minority interest in its
subsidiary, Makassar Investments Limited.
The latest dollar notes will upon issue rank pari passu in all respects with the
dollar notes already in issue. As such, they will be unsecured obligations of
REA, will bear interest at 7.5 per cent per annum payable half yearly on 30 June
and 31 December (and as respects interest payable on 31 December 2006 calculated
as if it accrued from 1 July 2006) and will be redeemable by three equal annual
instalments commencing 31 December 2012 (subject to reduction where dollar notes
have been previously purchased by REA and cancelled in which event the amount of
dollar notes that REA will be obliged to redeem on any given redemption date
will be reduced by the nominal amount of dollar notes purchased and cancelled
prior to that redemption date save in so far as such notes were purchased and
cancelled prior to a previous redemption date and taken into account in reducing
the note redemption requirement in relation to that previous redemption date).
On the basis that all of the latest dollar notes available for issue are duly
issued, the proceeds of issue are estimated to amount to $3.70 million net of
estimated expenses (including a 2 per cent placing commission payable to KBC
Securities N.V.) of $92,000. It is intended that the net proceeds of the issue
will be applied in reducing group indebtedness to banks in Indonesia.
Application has been made for the latest dollar notes to be admitted to the
Official List of the Financial Services Authority and to trading on the London
Stock Exchange's market for listed securities. It is expected that such
admissions will become effective and that dealings in these dollar notes will
commence on 4 July 2006.
The latest dollar notes will be issued on the basis of the base prospectus
published by REA on 17 August 2005, the supplementary prospectus published by
REA on 15 February 2006 and a document setting out final terms of issue which
REA is now publishing. Copies of these documents have been or are being
submitted to the UK Listing Authority, and will be available for inspection at
the UK Listing Authority's Document Viewing Facility, which is situated at:
Financial Services Authority,
25 The North Colonnade,
Canary Wharf,
London,
E14 5HS
Telephone: 020 7676 1000
Copies may also be inspected at the offices of REA at 3rd Floor, 40-42 Osnaburgh
Street, London NW1 3ND and in electronic form on the website maintained by REA
at www.rea.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange