FACTS FOR INVESTORS.

Auckland Star, Volume LXVI, Issue 268, 12 November 1935, Page 4

FACTS FOR INVESTORS.

ANTHONY HORDERNS. PAYING OFF DEBENTURES. Early last month the board of Anthony Hordcrns made an important announcement in regard to its debentures. Back in 1920, £1,000,000 of debentures were issued with a currency of 20 years and interest at 7 per cent per annum, payable half-yearly; £100,000 of these were redeemed in October, 1930, and anotkei £110,000 in May, .1934. That left a balance outstanding of £790,000. Since October, 1931, the Interest Reduction Act has reduced the 7 per cent by 22'/6 per cent, i.e., to £5 8/6 per cent, an annual charge on profits of £42,857. The company has the right after ten years (i.e., after June, 1936; of redeeming the outstanding debentures, provided three months' notice be given prior to the first interest date after the ten years has expired, which will be September 1, 1936. The board has now given notice to the present debenture holders of their intention of paying off the £790,000 outstanding, and arrangements have be;:n completed with the Mutual Life and Citizens' Assurance Company, Limited, to take up, on September 1, 1936, £600,000 debentures of ten years' currency. Interest is to be at £4 2/6 per cent payable halfyearly, and the company has given an undertaking to reduce the amount by £10,000 each, half-year—£2o,ooo a year— and retained the right to repay up to £50,000 in one year, on giviug three months' notice. When the Mutual Life and Citizens' take up £600,000 there will be a balance of £190,000 outstanding, and the board intends to redeem these out of the cash resources of the company. Commenting on the foregoing, "Rydge's Financial Review" says: "The move is Koing to mean a big saving in expenses, and. naturally, net profits will benefit With the conversion to the lower interest rate and the repayment of £190,000, thera will be an immediate saving of £18,107 in interest. Of course, the company will lose something from the present investment of its liquid resources, but the conversion considerably enhances the prospects of the ordinary shareholders. The ordinary £1 shares are worth around 19/3 on 'Change, and at that price cau be bought with confidence. The company has not paid a dividend on this class of capital since 1931, but it now looks, as if it is only a matter of months before this class of shareholder will once again be receiving regular returns." BROKEN HILL PROPRIETARY: When the conditions were arranged by the directors of the Broken Hill Proprietary Company. Limited, lor the new issue of 1,493,854 shares of £1 each, it was I decided to give shareholders tjic option of applying for unallotted shares in addition to their quota of one new share for every two shares held. There has becii such a keen demand for the rights to the new issue that only very neglectful shareholders will fail to apply for their quotas, says a Melbourne exchange. Unallotted shares will, therefore, be small in number, practically comprising only those termed "fractions"—where a parcel held is not an even number divisible by two. For instance, if a shareholder held 25 shares he would be entitled to 12 new shares, not 12%. These fractious will be added together, and one new share will be issued on the usual terms at the discretion of the directors for two whole shares so represented. Up to October 29 more than 900,000 shares had been applied for in Australia, and figures for places abroad had yet to be added. BANK OF NEW SOUTH WALES. The ordinary general meeting of the Bank of New South Wales will be held in Sydney on Friday, November 29. In connection with the payment of the dividend transfer books closed at 3 p.m. on November 11.