proposed issue of $3 million nominal of 7.5 per...

R.E.A. Holdings plc (RE.)
R.E.A. Holdings plc: proposed issue of $3 million nominal of 7.5 per cent dollar notes 2022

25-Sep-2019 / 11:34 GMT/BST
Dissemination 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.

R.E.A. Holdings plc ("REAH" or the "company")

Proposed issue by REAH of $3 million nominal of 7.5 per cent dollar notes 2022

As stated in the company's half yearly report published on 20 September 2019, an agreement has been reached with a customer of the group pursuant to which the customer will enter into an advance supply arrangement for the purchase by the customer of CPO from the group.Â In connection with such arrangement, it has been agreed that the customer should subscribe $3 million of new 7.5 per cent dollar notes 2022 of the company (the "dollar notes").

Accordingly, the company proposes today to issue $3 million nominal of new dollar notes by way of a placing and the customer will subscribe such notes for $3 million in cash, plus an amount equal to the interest accrued on the existing issued dollar notes in respect of the period from 1 July 2019 to the date of issue of the new dollar notes. Â The subscription monies for the new dollar notes, which are payable in full on allotment, reflect the value of the new dollar notes, the value of the CPO supply arrangements agreed by the group and an agreement by the company to repurchase the new dollar notes up to an amount equal to the balance of the dollar notes then held by the customer should the supply arrangements terminate before 30 June 2022 (being, the redemption date of the dollar notes).Â

The new dollar notes will rank pari passu with the US$24,035,218 original dollar notes currently in issue.Â Interest on the new dollar notes is payable semi-annually in arrears on 30 June and 31 December in each year, commencing on 31 December 2019.Â Â Â

It is expected that dealings in the fully paid new dollar notes issued pursuant to the placing will commence on or about 30 September 2019.

Application has been made to the Financial Conduct Authority under Part VI of the Financial Services and Markets Act 2000 for the new dollar notes to be admitted to the Official List of the UK Listing Authority and to the London Stock Exchange plc for such notes to be admitted to trading on the Regulated Market of the London Stock Exchange plc.Â The proposed issue is conditional upon the admission of the new dollar notes allotted pursuant to the placing to the Official List and to trading on the Regulated Market of the London Stock Exchange.