REA to resell $9 million 7½% notes under supplemental rights agreement

By Susanna Moon

Chicago, June 6 - R.E.A. Holdings plc said some of its holders will sell $9 million of its 7½% dollar-denominated notes due 2012/2014 to REA Services Ltd. at par plus accrued interest, and REA Services will then resell the notes to institutional investors at a price of $99.70 plus accrued interest per $100 of notes.

REA exercised its rights under a supplemental rights agreement with Morris Edward Zukerman and Morris Edward Zukerman as trustee of the Zukerman Family Trust to require the Zukerman family holders to sell $9 million nominal amount of the dollar notes to REA Services, according to a company press release.

The purchase will be completed on July 2, and the resale of the notes and of the additional $1 million of dollar notes already held will be completed shortly thereafter, the release noted.

The transactions will release the REA group from restrictive covenants contained in the supplemental rights agreement that might have limited the group's flexibility in relation to the planned future listing in Jakarta of an Indonesian sub-holding company of the group's plantation operations, the release explained.

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.

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