Business
Further issue of dollar notes
Further issue of dollar notes.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n29 June 2006\n\n\nR.E.A. Holdings plc ('REA')\n\nProposed further issue of 7.5 per cent dollar notes 2012/14 ('dollar notes')\n\n\nREA announces that it has entered into an agreement with KBC Securities N.V.\n('KBC') whereby KBC has agreed to use its reasonable endeavours to procure\nplacees for up to $4,100,000 nominal of dollar notes at an issue price of 92.5\nper cent of par, payable in full on subscription. The redemption yield at the\nissue price on 3 July 2006 will be 9.1 per cent.\n\nThe dollar notes now proposed to be issued (the 'latest dollar notes') will form\npart of a total proposed issue of $30,000,000 of dollar notes which are\nconstituted pursuant to a trust deed dated 12 September 2005 and made between\nR.E.A. Holdings plc and The Law Debenture Trust Corporation plc. $23,972,281\nnominal of dollar notes are already in issue. Of these, $4,972,281 nominal were\nissued pursuant to a reorganisation of the company's former 4 per cent\nconvertible loan stock 2012 that became wholly unconditional on 12 September\n2005 and the balance of $19,000,000 nominal was issued on 21 February 2006 as\nconsideration for the acquisition by the company of a minority interest in its\nsubsidiary, Makassar Investments Limited.\n\nThe latest dollar notes will upon issue rank pari passu in all respects with the\ndollar notes already in issue. As such, they will be unsecured obligations of\nREA, will bear interest at 7.5 per cent per annum payable half yearly on 30 June\nand 31 December (and as respects interest payable on 31 December 2006 calculated\nas if it accrued from 1 July 2006) and will be redeemable by three equal annual\ninstalments commencing 31 December 2012 (subject to reduction where dollar notes\nhave been previously purchased by REA and cancelled in which event the amount of\ndollar notes that REA will be obliged to redeem on any given redemption date\nwill be reduced by the nominal amount of dollar notes purchased and cancelled\nprior to that redemption date save in so far as such notes were purchased and\ncancelled prior to a previous redemption date and taken into account in reducing\nthe note redemption requirement in relation to that previous redemption date).\n\nOn the basis that all of the latest dollar notes available for issue are duly\nissued, the proceeds of issue are estimated to amount to $...