R.E.A. Holdings Proposes Changes to 7.5% Dollar Notes 2026

R.E.A. Holdings plc has announced proposals regarding its 7.5% dollar notes due in 2026. The company plans to extend the maturity date of these notes from 30 June 2026 to 31 December 2028. Additionally, R.E.A. is seeking consent from noteholders for a potential capital reduction, reducing up to $20 million from the share premium account. A meeting is scheduled for 4 September 2025 to discuss these proposals.

The company aims to improve its debt maturity profile and ensure liquidity. In 2024, a rise in profitability due to higher selling prices and reduced operating costs was noted. Despite holding sufficient cash to redeem the sterling notes due in August 2025, R.E.A. prefers to extend the dollar notes' redemption to avoid undue financial strain.

As part of the proposal, a roll-over fee will be offered to noteholders who agree to the extension. A sale facility is also available for those wishing to realize their investment by 30 June 2026. The proposals are contingent upon the approval of noteholders and require compliance with certain conditions by 31 October 2025.