R.E.A. Trading plc: Proposals to extend the redemption date for the 9.5 per cent loan notes 2024 issued by R.E.A. Trading plc

R.E.A. Trading plc ("REAT")

Proposals to extend the redemption date for the 9.5 per cent loan notes 2024 issued by R.E.A. Trading plc from 30 June 2024 to 30 September 2027

REAT announces proposals to extend the redemption date for the 9.5 per cent loan notes 2024 issued by REAT (the "notes") from 30 June 2024 to 30 September 2027, with a right on the part of REAT to pre-pay the notes, in whole, on either 30 September 2025 or 30 September 2026 without penalty.  The interest rate payable on the notes would be increased from 9.5 per cent per annum to 13.5 per cent per annum with effect from 1 October 2023.

The directors are aware that not all noteholders may be willing to have the monies represented by their holdings of notes tied up beyond 30 June 2024.  Accordingly, to assist noteholders who would wish immediately to divest their notes in the event of the proposals set out above (the "proposals") becoming unconditional but are unable to find purchasers of their notes through the market, REAT will procure that, in that event, its wholly owned subsidiary, REAT Services Limited, will offer to purchase up to £500,000 nominal of notes, at par plus accrued interest, by 31 October 2023.

The proposals will require the sanction of the holders of the notes given by way of an extraordinary resolution to be proposed at a meeting of the holders of the notes.  The proposals will be conditional upon the passing of such extraordinary resolution. 

REAT will be writing to noteholders to give further details of the proposals and the background to and reasons for the same, and to give notice of a meeting of the holders of the notes to be held at the registered office of REAT at 5th Floor North, Tennyson House, 159-165 Great Portland Street, London W1W 5PA.  The necessary extraordinary resolution will be proposed at such meeting.  It is expected that the circular to noteholders will be posted early next month, with the meeting of the holders of the notes to be held towards the end of the month. 

Enquiries

R.E.A. Trading plc:  020 7436 7877

Date:  14 August 2023