Bullish indicating open at $55-$60, IPO prices at $37
LONDON - R.E.A. Holdings plc (LSE:RE.) announced Monday it is seeking noteholder approval to extend the redemption date of its $27 million 7.5 percent dollar notes from June 30, 2026, to December 31, 2028.
The company is also requesting noteholder consent for a potential reduction of up to $20 million from its share premium account, according to a press release statement.
A meeting of noteholders has been scheduled for September 4, 2025, to vote on these proposals. Kuala Lumpur Kepong Berhad, whose subsidiaries hold approximately $17.57 million of the outstanding notes, has committed to vote in favor of the resolutions.
R.E.A. Holdings cited the need to improve its debt maturity profile as the primary reason for the extension. The company noted that redeeming the dollar notes on the original due date, combined with $20 million in bank debt repayments also due in 2026, would create a cash outflow "disproportionate to the group’s internal cash generation."
Noteholders who approve the extension and do not sell their holdings will receive a roll-over fee on June 30, 2026. The company is also offering a sale facility for noteholders who wish to realize their holdings on the original redemption date.
The proposed capital reduction would convert part of the company’s $47.4 million share premium account into distributable reserves, potentially enabling dividend payments that might otherwise be restricted by legal constraints.
R.E.A. Holdings confirmed it has sufficient cash resources to redeem £21.4 million of sterling notes due on August 31, 2025.
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