R.A.B. Holdings to pay part of upcoming coupon on 10½% notes in kind

New York, Oct. 29 - R.A.B. Holdings, Inc. said its R.A.B. Enterprises, Inc. subsidiary has agreed with some holders of its 10½% senior notes due 2005 to make the upcoming interest payment in kind instead of cash.

So far holders of 69% of the notes have agreed to participate.

The company will pay $1,000 principal amount of notes for each $500 of interest due on Nov. 1. Amounts less than $500 will be paid in cash.

As a result of the agreement, R.A.B. will pay $5.8 million in new notes and $2.9 million in cash.

"We are pleased that the majority of holders of the 10½% senior notes have taken this step, which gives the company substantial additional liquidity. We intend to use the additional liquidity for general working capital purposes," said Steven M. Grossman, executive vice president and chief financial Officer of R.A.B. Holdings, in a news release.

New York-based R.A.B. Holdings, through its Millbrook Distribution Services subsidiary, is a distributor of specialty foods, health and beauty care products and general merchandise to supermarkets and mass market retailers. It also carries its own private-label brands.

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