REG-R.E.A. Holdings plc R.E.A. Holdings plc: Update re financing and certain other matters

R E A HoldingsAnnouncement

25/11/2021 07:05

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: Update re financing and certain other matters

   25-Nov-2021 / 07:00 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.

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

   REA is pleased to announce successful conclusion of the group's previously
   reported discussions with its Indonesian bankers, PT Bank Mandiri
   (Persero) Tbk ("Mandiri"), regarding facilities provided by Mandiri to
   REA's subsidiaries, PT Sasana Yudha Bhakti ("SYB") and PT Kutai Mitra
   Sejahtera ("KMS"). This has resulted in an agreement that the existing
   Indonesian rupiah denominated loans made by Mandiri to SYB and KMS will be
   repaid and will be replaced by new Indonesian rupiah denominated loans. In
   addition, Mandiri will provide an Indonesian rupiah denominated working
   capital facility to SYB. Completion of this agreement remains subject to
   satisfaction of certain technical conditions but is expected to occur
   within weeks.

   The outstanding principal amounts of the existing Mandiri loans to SYB and
   KMS are, respectively, Rp 331 billion ($23.2 million) repayable over 5
   years and Rp 123 billion ($8.6 million) repayable over 1 year, while the
   replacement loans will amount to Rp 555 billion ($38.9 million) and Rp 365
   billion ($25.6 million), both repayable over eight years. The new SYB
   working capital facility will amount to Rp 15 billion ($1.1 million) and
   will be renewable annually. Security for the new loans and working capital
   facility will be similar to that for the existing loans (and will include
   continuing guarantees from REA). The interest rate on the new loans and
   working capital borrowings will be 8.75 percent (against the rate of 9.75
   percent payable on the existing Mandiri loans to SYB and KMS, such rate
   having been reduced from, respectively, 11.25 and 11.5 percent from 1
   October).

   Following completion of the above arrangements with Mandiri, REA intends
   to initiate discussions with holders of its 7.5 per cent dollar notes 2022
   with a view to seeking the holders' agreement to extend the maturity date
   of the notes by four years, but on terms that the group will be willing to
   repurchase, on the existing maturity date of 30 June 2022, notes held by
   those holders who do not wish to retain their notes for the extended
   period.  It would then be the group's intention, over time, to sell back
   to investors any notes so repurchased.

   The recent recommencement of coal mining operations at PT Indo Pancadasa
   Agrotama ("IPA") encourages an expectation of significant near term
   recovery of loans made by the group to IPA, but the validity of that
   expectation can be better evaluated when IPA completes the first sale of
   coal from the recommenced operations. This is expected to occur before the
   end of the current year.

   As already announced, REA will pay a dividend of 5½p per share on the
   company's preference shares on 31 December 2021. The 5½p will comprise 1p
   per share of arrears of dividend plus the 4½p of dividend accruing on 31
   December 2021. REA intends that, in addition to the normal dividends
   (totalling 9p per share) accruing in respect of the preference shares
   during 2022, the company will pay not less than 10p per share of dividend
   arrears on the shares (amounting to 17p per share after payment of 1p of
   arrears on 31 December 2021) by no later than 31 December 2022. REA plans
   to increase this amount if expectations regarding recovery of the loans to
   IPA are confirmed, the group's oil palm operations continue to perform
   satisfactorily, and the group retains a substantial proportion of the
   existing dollar note funding for the proposed extension period.

   Enquiries:

    

   R.E.A Holdings plc

   Tel: 020 7436 7877

    

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   ISIN:          GB0002349065
   Category Code: MSCH
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  127620
   EQS News ID:   1251797


    
   End of Announcement EQS News Service

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