REA plans up to $50 million 7½% notes issue in exchange, placement

By Jennifer Chiou

New York, Oct. 25 - R.E.A. Holdings plc announced a proposed overall issue of $50 million of new 7½% dollar-denominated notes due 2017.

According to a filing with the London Stock Exchange, $35 million of the new notes will be issued in exchange for the existing $35 million of dollar-denominated notes due 2012/2014 in order to extend the existing notes' maturity and $15 million of the new notes will be issued in a placement by Guy Butler Ltd.

The company directors announced the transactions in connection with plans for the amalgamation of all of the group's Indonesian plantation subsidiaries into a single sub-group headed by P.T. REA Kaltim Plantations.

For each $100 nominal amount of existing dollar notes, $100 nominal of new dollar notes plus $0.25 in cash will be issued in addition to accrued interest.

Tenders for exchange are due by 8 a.m. ET on Nov. 15.

The offer and placement are both conditioned on a minimum of $10 million nominal of new dollar notes.

Proceeds from the placement are earmarked for financing of the company's planned extension planting program.

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. Questions may be directed to the company (020 7436 7877).

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