BIG DEBENTURE ISSUE

Press, Volume XC, Issue 27470, 2 October 1954, Page 8

BIG DEBENTURE ISSUE

CAPITAL FOR TASMAN PAPER COMPANY MORE THAN £1,800,000 SUBSCRIBED (New Zealand Press Association) WELLINGTON, October 1. The chairman of the Tasman Pulp and Paper Company (Sir James Fletcher) announced this afternoon that some 2000 applications, amounting to more than £1,800,000, had been received for the company’s £2,000,000 5 per cent, debenture issue. The issue, which closed yesterday, was open for a month. Further applications are in the mail. More than of the sum subscribed came from members of the public and the balance from lending institutions. In accordance with the terms of the underwriters’ agreement the underwriters, Messrs Daysh, Renouf and Frethey, would subscribe the compartively small amount of undersubscription, thus ensuring that Tasman would receive the full sum sought, said Sir James Fletcher. In New Zealand it was unusual for

companies to raise finance by issuing debentures, said Sir James Fletcher, and this issue was remarkable for the support it attracted. The investing public had sufficient faith in the Tasman company, which was not yet in production, to subscribe more than £1,000,000 of this issue.

He paid a tribute to the underwriters and sub-underwriters, without whose support the issue would not have been possible, and added that a further indication of public confidence in the company was the fact that Tasman shares were now at a premium.

Rangiora Electricity Quota.— Over* the last eight weeks, the Rangiora Borough Council had kept within its quota by I per cent, on an average, stated the borough electrical engineer (Mr H. H Matthews) yesterday. Last week, the borough was 2.15 per cent, within its quota. *