Business
Prospectus
Prospectus.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n RNS Number : 9067T R.E.A.Hldgs PLC 05 October 2010 \n \n\nR.E.A. Holdings plc (\"REA\")\n \nProposed issue\n \nAs anticipated in its interim management statement issued today, R.E.A. Holdings plc (\"REA\") announces that it proposes to issue, to the extent that markets permit, up to 9 million 9 per cent cumulative preference shares of £1 each (\"new preference shares\") by way of a placing at 100p per share. Guy Butler Limited has undertaken to use its reasonable endeavours to effect the placing on the company's behalf. \n \nIt is expected that the results of the placing will be announced on 28 October 2010 and that dealings in the new preference shares issued pursuant to the placing will commence on 29 October 2010.\n \nThe placing is conditional upon the new preference shares to be issued pursuant to the placing being admitted to the standard listing segment of the Official List and to trading on the London Stock Exchange's main market for listed securities. \n \nReasons for the proposed issue and use of proceeds\n \nThe capital of the group currently comprises issued ordinary shares, issued preference shares, 7.5 per cent dollar notes 2012/14 (\"dollar notes\"), 9.5 per cent sterling notes 2015/17 (issued by REA Finance B.V. and guaranteed by REA) (\"sterling notes\") and other borrowings. The capital represents permanent capital (the preference shares are not redeemable shares). The balance of the capital is debt, which is repayable. In particular, the dollar notes and the sterling notes, which represent the major part of the debt capital of the group, are repayable by instalments over a six year period commencing 31 December 2012. \n \nThe company is of the opinion that it has sufficient working capital for its present requirements, that is for at least twelve months following the date of this document. Looking beyond twelve months, the directors believe that the group should be in a position to meet its debt repayments as these fall due without the need to raise any additional capital but the directors also believe that the group can comfortably support the current level of prior ranking capital (comprising the aggregate of the issued preference shares, the dollar notes, the sterling notes and other borrowings). Since the ...