R.E.A. Holdings will ask to extend redemption of 9½% notes until 2027

By Mary-Katherine Stinson

Lexington, Ky., Aug. 14 – R.E.A. Holdings plc said it will ask holders to approve extending the redemption date for its 9½% notes (ISIN: GB00BKPG0682) to Sept. 30, 2027 from June 30, 2024 via the passage of an extraordinary resolution, according to a company notice.

If passed, the interest rate of the notes would be increased to 13½% annually effective Oct. 1.

Additionally, R.E.A. would be allowed to fully prepay the notes on either Sept. 30, 2025 or Sept. 30, 2026 without penalty.

In the event that the proposal is passed, holders who wish to immediately divest their notes and are unable to find purchasers of their notes through the market will be assisted by R.E.A.’s wholly-owned subsidiary REAT Services Ltd., which will offer to purchase up to £500,000 nominal of notes at par plus accrued interest by Oct. 31.

REAT will write to noteholders to give further details of the proposals and to give notice of the noteholders’ meeting to be held at REAT’s registered office in London. The necessary extraordinary resolution will be proposed at the meeting.

The noteholders’ circular will be posted in early September, with the meeting to be held the same month.

London-based R.E.A. is engaged in the cultivation of oil palms and the production of crude palm oil and crude palm kernel oil in the Indonesian province of East Kalimantan.

© 2015 Prospect News.
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