R.E.A. Holdings to buy back some 7½%, 9½% notes with equity proceeds

By Angela McDaniels

Tacoma, Wash., Oct. 5 - R.E.A. Holdings plc plans to repurchase some of the 7½% dollar-denominated notes due 2012/2014 and/or 9½% sterling-denominated notes due 2015/2017 issued by REA Finance BV, according to a company news release.

The proposed repurchase will be funded with the proceeds of an up to £9 million offering of 9% cumulative preference shares.

The offering is expected to be completed by the end of October.

The company noted that the notes are repayable by installments over a six-year period beginning Dec. 31, 2012.

According to the release, R.E.A. believes that it has sufficient working capital for at least 12 months and wants to be able to meet its debt repayments as they fall due without having to raise any additional capital.

London-based R.E.A. Holdings' principal activities are the cultivation of oil palms and the production of crude palm oil in the Indonesian province of East Kalimantan.

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