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

14 Aug 2006 11:49

R.E.A.Hldgs PLC14 August 2006 R.E.A. Holdings plc ("REA") Further issue of 7.5 per cent dollar notes 2012/14 ("dollar notes") REA announces that it has today concluded arrangements with Guy Butler Limitedfor the placing of $1,927,719 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 is 9.3 per cent. The dollar notes now being issued (the "final dollar notes") form the finaltranche of an issue of $30,000,000 nominal of dollar notes which are constitutedpursuant to a trust deed dated 12 September 2005 and made between R.E.A.Holdings plc and The Law Debenture Trust Corporation plc. $28,072,281 nominal ofdollar notes have been previously issued. Of these, $4,972,281 nominal wereissued at par pursuant to a reorganisation of the company's former 4 per centconvertible loan stock 2012 that became wholly unconditional on 12 September2005, $19,000,000 nominal were issued at par on 21 February 2006 asconsideration for the acquisition by the company of a minority interest in itssubsidiary, Makassar Investments Limited, and the balance of $4,100,000 nominalwas issued for cash on 3 July 2006 at a subscription price of 92.5 per cent ofpar. The final dollar notes rank pari passu in all respects with the dollar notespreviously issued. As such, they are unsecured obligations of REA, will bearinterest at 7.5 per cent per annum payable half yearly on 30 June and 31December (but as respects interest payable on 31 December 2006 calculated as ifit 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). The proceeds of issue of the final dollar notes are estimated to amount to $1.73million, net of estimated expenses (including a 2.5 per cent placing commissionpayable to Guy Butler Limited) of $50,000. It is intended that the net proceedsof the issue will be applied in reducing group indebtedness to banks inIndonesia. Application has been made for the final 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 the final dollar noteswill commence on 15 August 2006. The final 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 the final terms of issue ofthe final dollar notes which REA is now publishing. Copies of these documentshave been or are being submitted to the UK Listing Authority, and will beavailable for inspection at the UK Listing Authority's Document ViewingFacility, 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