Retail Holdings N.V. Announces Maturity Extension and $5.0 Million Pre-payment of SVP Notes
WILLEMSTAD, Curacao, June 29, 2012 /PRNewswire/ -- Retail Holdings N.V. (the "Company") (OTC Pink Sheets: RHDGF) announced today that as part of a debt refinancing at SVP Worldwide that extended the maturity and increased the size of their available facilities to allow further growth in the worldwide sewing business, the Company agreed to extend the maturity of the SVP Notes (the "Notes") that it holds from 2014 to 2018, maintaining the current 12% interest rate (a minimum of 7% of principal to be paid in cash). Concurrent with the refinancing, SVP prepaid $5.0 million of the Notes at a 15% discount to notional value, reducing the outstanding value of the remaining Notes to $21.6 million as at 30 June 2012.
As a consequence of receiving this $5.0 million pre-payment, the Retail Holdings Board of Directors anticipates increasing the recommended distribution to shareholders, which is subject to approval at the Company's Annual Meeting in September 2012, from at least $1.00 per Share to $2.00 per Share. The Company is evaluating the impact of the extension and of the discount on prepayment on the carrying value of the remaining Notes.
About Retail Holdings
The Company holds three principal assets: 1) a 56.13% equity interest in Singer Asia, a distributor of consumer durable products in Bangladesh, India, Pakistan, Sri Lanka and Thailand with consumer credit and other financial services available to qualified customers; 2) the SVP Notes, arising from the sale of the Singer worldwide sewing business and trademark in 2004; and 3) cash and cash equivalents. The Company has no operating activities other than those carried out through Singer Asia.
Retail Holdings is a Curacao public company, which is the successor company to the Singer Company N.V. and its predecessor companies. Price quotations for the Retail Holdings Shares are available on the OTC Pink "Pink Sheets" quotation service under the symbol "RHDGF".
Additional financial and other information about the Company including: Retail Holdings' audited, consolidated financial statements for the twelve months ended December 31, 2011, and all prior statements since September 2000, together with the Auditor's Reports thereon; the 2011 Annual Report dated March 2012, and all prior Disclosure Statements and Reports since September 2000, and; copies of all semi-annual and quarterly reports and press releases since September 2000; may be found at the Corporate/Investor section of the Retail Holdings website: www.retailholdings.com.
For further information, please contact Amy Pappas at (914) 241-3404.
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