Business
Proposals re 8.75 per cent guaranteed sterling ...
Proposals re 8.75 per cent guaranteed sterling ....
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n \n\n\nR.E.A. Holdings plc (RE.)\n\n\n\nR.E.A. Holdings plc: Proposals re 8.75 per cent guaranteed sterling notes06-March-2020 / 07:00 GMT/BSTDissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n\nR.E.A. Holdings plc (\"REA Holdings\" or the \"company\")\n\nREA Finance B.V. (\"REA Finance\")\n\nProposals to extend the date for repayment of the 8.75 per cent guaranteed sterling notes 2020 \n\n \n\nIntroduction\n\n \n\nThe company announced in its trading update published on 7 February 2020 that it was working on arrangements regarding refinancing of the £30.9 million nominal of 8.75 per cent sterling notes 2020 issued by REA Finance and guaranteed by the company (the \"sterling notes\") that fall due for repayment in August 2020. \n\n \n\nThe company now announces that it is today despatching a circular (the \"circular\") to holders of the sterling notes containing proposals to extend the date for repayment of the sterling notes from 31 August 2020 to 31 August 2025 in consideration of the issue by REA Holdings to holders of the sterling notes of warrants to subscribe new ordinary shares of 25p each in the capital of REA Holdings (the \"proposals\").\n\n \n\nBackground\n\n \n\nThe outstanding balance of the sterling notes is £30,852,000. The outstanding balance is due to be redeemed in full on 31 August 2020. \n\n \n\nIn accordance with the structure set out in the trust deed, REA Finance has lent substantially all of the subscription monies received by it for the sterling notes, and for the now historic 9.5 per cent guaranteed sterling notes 2015/2017 of REA Finance (in exchange for which most of the existing sterling notes were issued), to REA Holdings for on-lending to qualifying subsidiaries. REA Finance is thus dependent upon repayment of the loans made by it to enable it to meet its redemption obligations in respect of the sterling notes. \n\n \n\nWhen the sterling notes were issued in 2015, the directors of REA Holdings were confident that the internal cash flows of the group from its operations in Indonesia would, by August 2020, be sufficient to fund the repayment of the borrowings by REA...