 Oh! Have no fear pb, we make my own decisions.We do have over £100k of the prefs. Only a few of the ords.IMV the company is getting things in order - perhaps with the assistance or maybe insistence of Mandiri. They failed to do this the last time cpo prices were highish for a period. Think the company is undervalued now. That said it is such a tiddler that the big boys are not interested.Had to smile at some of the similarities of losses. We have RAVP too. Just didn't think Putin would invade. I do think that is a goner. Wasps - we bought a lot below par so we came out around breaking even. There will be one maybe two small further payments. What about PCF. Who could have seen a poor quality board run this into the ground. Then there is Evoke. I am not at all optimistic this will come through without restructuring. But even the big boys are a disaster BT, Voda, and their like. So, we are now substantially in fixed interest now including TBillsGilts. Just to finish that one would be have to be mad to buy based on some of posts on here! |
Dandi do not buy on anything I say. I am a terrible investor. I have held REA prefs for years and bought a small amount of ordinaries at more than double the current price. I have almost had all my original investment back in dividends on the prefs. It has been a very bumpy and sometime scary ride.
I also held RAVP preference shares thinking Putin would not invade. Now I have a 100,000 RAVP that are probably worthless. it represented 33% of my pension income. oops.
My last terrible trades were buying Kefi at 0.6p now 0.5p. A complete gamble.
I also sold RKH which I have held for years at 20p only to see them more than double. Though I did sell at a profit.
I still think MP Evans could swallow REA and its debt. Though just a wish rather than anything concrete. |
Following the post by pb have been looking at the relative sizes of mpe and rea. Think that mpe could gobble up rea for not much money for them. After rea annuals when the current position of rea will be clearer, perhaps. Have bought a few more ords this a.m. |
Prefs have long needed some attention but Mandiri are in the driving seat now with some dollars 170m outstanding. Servicing that will be the priority. Failure to honour their obligations to Mandiri could result in a change of ownership at REA. |
The current pref yield looks expensive compared to the bank loan interest rate. |
Hello pb The positives I took from this was the matching of currency of income with currency of the loans thereby removing some forex risk. Moreover, all of the facilities appear to be on a reducing basis in future. Bear in mind also that some pounds 9.5m was repaid at the end of last year/beginning of this.In requiring regular repayments Mandiri have brought financial discipline to REA whether they liked it or not. Failure to make an instalment will be a big red flag for Mandiri.Doubtless divis on the prefs will have been included in the projections. So that is looking good provided the cpo holds up.It is now for REA to perform. |
Does debt ever come done at REA. With CPO holding up for the last year where is the cash to pay down debt? It seems that REA has no free cash flow, It still needs to borrow more cash for working capital. I understand the borrowings to repay the bonds that fall due. Surely cash flow from the business should be enough to fund working capital. This feels like the debt can is just being kicked down the road.
This time next year it would be good to see debt lower than today.
Perhaps things will look clearer when i read the next annual report. |
This is excellent for several reasons mainly the reduction of exchange risk and interest rates lower than the prefs. It also deals with the loan due this August.All against the background of the CPO price remaining steady so far this year.Well done to the Board. |
R.E.A. Holdings plc ("REA" or the "company")
Bank funding in Indonesia
REA announces that agreement has been reached with the group’s Indonesian banker, Bank Mandiri, to provide further term loans, and to amend the repayment terms of certain of the existing loans, to group plantation subsidiaries in Indonesia.
Further loans have been extended to each of REA Kaltim and SYB amounting to the equivalent of, respectively, $28.8 million and $8.8 million, with such loans repayable by increasing monthly instalments over periods of between seven and nine years. Repayments of the outstanding principal of the older existing loans to each of REA Kaltim and SYB, amounting as at 26 March 2025 to the equivalent of, respectively, $41.6 million and $24.6 million, have been rephased and will now be made by increasing monthly instalments over a period of four years. The loan of Rp 350 billion (equivalent to $21.1 million) which Bank Mandiri agreed to provide to REA Kaltim in March 2024, of which the full amount is currently outstanding and which is repayable by increasing quarterly instalments from June 2028 up to March 2034, has not been amended and remains in place.
Additionally, Bank Mandiri has provided a new term loan to PU. The loan is equivalent to $15.0 million and is repayable by increasing monthly instalments over nine years.
The amended and new loans carry interest at rates of between 8.25 and 8.5 per cent per annum and will all be guaranteed by the company. In addition, the loan to SYB will be guaranteed by REA Kaltim and the loan to PU by Luke Robinow personally in his capacity as President Director of PU (Bank Mandiri having required such personal commitment by the management of PU as PU’s oil palm estate is still under development). The company will provide a limited indemnity to Luke Robinow in respect of his guarantee to Bank Mandiri.
The further loans to REA Kaltim and SYB have been drawn down in full and the new loan to PU to the extent of $5.1 million. Following such drawdowns, group borrowings from Bank Mandiri currently amount in aggregate to the equivalent of $168.7 million. The balance of the agreed new loan to PU of $9.9 million is expected to be drawn down during the next few months.
The new loans to REA Kaltim and SYB will provide the group with additional cash resources equivalent to $37.6 million. These will be used principally to fund repayment of existing borrowings, including repayment of the £21.4 million nominal of sterling notes falling due on 31 August 2025, and to a limited extent in augmenting working capital for the company’s operations. The new loan to PU will be used to fund a proportion of PU’s continuing development programme. |
My favourite line in the MPE results is 'Actively seeking new strategic acquisitions,'. I would accept 100-120p for my prefs and 200p-250p for my ordinaries.
MP Evans you are welcome to bid for REA. |
MPE positive results. |
Thanks.Great results from MPE including a 17% increase in divi. REA should produce good 2024 figures too.Moreover, 2025 has started really well with CPO above the same period last year.Pref div is safe.Addressing the debt falling due mid-year should be much easier this time around.Let us see where they are with the stone operations. |
MPE results might be worth a look for holders here... |
bank debt could be in any currency. or swapped to match liabilities.
the prefs seem expensive with market fees.
need to collect all these 3rd party equity / loans etc.
cashflow should be helpful this year. |
Debt has been more expensive than the prefs and there is exchange risk to take into account. Moreover some of the debt has to be repaid not at par but at 104. Debt has been a burden to REA; it is great that the board are trying to reduce it. They are to be commended for buying back via Guy Butler a chunk at a discount.Continued roll overs are not the answer IMV.There is no need to buy back the prefs at par. As I understand it, the Articles permit market purchases. |
or rolled. Bank debt may be cheaper in the medium term. prefs are relatively expensive but more flexible.
lets see what cashflow is like this year. |
£23m of 8.75% debt to be repaid on 31st August. |
buying back some prefs at par would be a start. |
Someone wants some stock at last |
82.5 to buy 100….
82.535 to sell 25,000
Price only going one way 🤞 |
With preference shares being bought back a tender offer at Aviva (GACA,GACB,aviva 8.375% and 8.75%) maybe some of this money is already looking for a home?
Aviva buying back at approx yield of 5.75%
If REA were to make a similar tender offer for their preference shares they would offer 156p a share. That is of course a dream at this stage but it shows what is possible.
Still fingers crossed for a cheeky bid from MPEvans at 200p on ordinaries and 120p on preference shares.
I continue to hope the company is keeping a firm control on costs and paying down debt as prudently as possible. |
Now 82.04 to sell, and still no online buy price |
Very interesting indeed……esp with AFDVFN showing 78 -81…..but couldn’t buy any on II but could sell a decent size @ 81.03……. |
Interesting indeed :-) |
Interesting pricing this morning
81.03 bid 82 offer |
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