R.A.B. Holdings gets definitive agreements from bondholders

By Jeff Pines

Washington, Nov. 22 - R.A.B. Holdings Inc. said it obtained definitive agreements with its bondholders for a restructuring of its 6% senior notes and 13% senior notes.

The successful conclusion to these negotiations has resulted in a significant reduction in the company's outstanding debt and annual cash interest expense, as well as extending its debt maturities until 2011, R.A.B. said.

Prospect News has previously reported noteholders will receive new 9% notes due May 2011, 11% series C preferred stock due 2013 and common stock.

For each $1,000 principal amount of 10½% notes, holders will receive $610.00 principal amount of 9% notes, $365.00 liquidation value of preferreds and shares of common stock.

For each $1,000 principal amount of 13% notes and 6% notes, holders will receive $55.00 liquidation value of preferreds and shares of common stock.

New York-based R.A.B. is a full-service independent distributor of specialty foods.

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