Business
Update re financing and certain other matters
Update re financing and certain other matters.
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: Update re financing and certain other matters25-Nov-2021 / 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\" or the \"company\")\n\nREA is pleased to announce successful conclusion of the group's previously reported discussions with its Indonesian bankers, PT Bank Mandiri (Persero) Tbk (\"Mandiri\"), regarding facilities provided by Mandiri to REA's subsidiaries, PT Sasana Yudha Bhakti (\"SYB\") and PT Kutai Mitra Sejahtera (\"KMS\"). This has resulted in an agreement that the existing Indonesian rupiah denominated loans made by Mandiri to SYB and KMS will be repaid and will be replaced by new Indonesian rupiah denominated loans. In addition, Mandiri will provide an Indonesian rupiah denominated working capital facility to SYB. Completion of this agreement remains subject to satisfaction of certain technical conditions but is expected to occur within weeks.\n\nThe outstanding principal amounts of the existing Mandiri loans to SYB and KMS are, respectively, Rp 331 billion ($23.2 million) repayable over 5 years and Rp 123 billion ($8.6 million) repayable over 1 year, while the replacement loans will amount to Rp 555 billion ($38.9 million) and Rp 365 billion ($25.6 million), both repayable over eight years. The new SYB working capital facility will amount to Rp 15 billion ($1.1 million) and will be renewable annually. Security for the new loans and working capital facility will be similar to that for the existing loans (and will include continuing guarantees from REA). The interest rate on the new loans and working capital borrowings will be 8.75 percent (against the rate of 9.75 percent payable on the existing Mandiri loans to SYB and KMS, such rate having been reduced from, respectively, 11.25 and 11.5 percent from 1 October).\n\nFollowing completion of the above arrangements with Mandiri, REA intends to initiate discussions with holders of its 7.5 per cent dollar notes 2022 with a view to seeking the holders' agreement to extend the maturity date of the notes by four years, but on terms that the group will be willing to repurchase, on the exis...