R.e.a.hldgs. Regulatory News (RE.)

29 Jun 2006 15:50

R.E.A.Hldgs PLC29 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 procureplacees for up to $4,100,000 nominal of dollar notes at an issue price of 92.5per cent of par, payable in full on subscription. The redemption yield at theissue price on 3 July 2006 will be 9.1 per cent. The dollar notes now proposed to be issued (the "latest dollar notes") will formpart of a total proposed issue of $30,000,000 of dollar notes which areconstituted pursuant to a trust deed dated 12 September 2005 and made betweenR.E.A. Holdings plc and The Law Debenture Trust Corporation plc. $23,972,281nominal of dollar notes are already in issue. Of these, $4,972,281 nominal wereissued pursuant to a reorganisation of the company's former 4 per centconvertible loan stock 2012 that became wholly unconditional on 12 September2005 and the balance of $19,000,000 nominal was issued on 21 February 2006 asconsideration for the acquisition by the company of a minority interest in itssubsidiary, Makassar Investments Limited. The latest dollar notes will upon issue rank pari passu in all respects with thedollar notes already in issue. As such, they will be unsecured obligations ofREA, will bear interest at 7.5 per cent per annum payable half yearly on 30 Juneand 31 December (and as respects interest payable on 31 December 2006 calculatedas if it accrued from 1 July 2006) and will be redeemable by three equal annualinstalments commencing 31 December 2012 (subject to reduction where dollar noteshave been previously purchased by REA and cancelled in which event the amount ofdollar notes that REA will be obliged to redeem on any given redemption datewill be reduced by the nominal amount of dollar notes purchased and cancelledprior to that redemption date save in so far as such notes were purchased andcancelled prior to a previous redemption date and taken into account in reducingthe note redemption requirement in relation to that previous redemption date). On the basis that all of the latest dollar notes available for issue are dulyissued, the proceeds of issue are estimated to amount to $3.70 million net ofestimated expenses (including a 2 per cent placing commission payable to KBCSecurities N.V.) of $92,000. It is intended that the net proceeds of the issuewill be applied in reducing group indebtedness to banks in Indonesia. Application has been made for the latest dollar notes to be admitted to theOfficial List of the Financial Services Authority and to trading on the LondonStock Exchange's market for listed securities. It is expected that suchadmissions will become effective and that dealings in these dollar notes willcommence on 4 July 2006. The latest dollar notes will be issued on the basis of the base prospectuspublished by REA on 17 August 2005, the supplementary prospectus published byREA on 15 February 2006 and a document setting out final terms of issue whichREA is now publishing. Copies of these documents have been or are beingsubmitted to the UK Listing Authority, and will be available for inspection atthe UK Listing Authority's Document Viewing Facility, which is situated at: Financial Services Authority,25 The North Colonnade,Canary Wharf,London,E14 5HSTelephone: 020 7676 1000 Copies may also be inspected at the offices of REA at 3rd Floor, 40-42 OsnaburghStreet, London NW1 3ND and in electronic form on the website maintained by REAat www.rea.co.uk. This information is provided by RNS The company news service from the London Stock Exchange