Taupo Totara note, debenture issue

Press, Volume CXI, Issue 32633, 15 June 1971, Page 17

Taupo Totara note, debenture issue

(New Zealand Press Association)

AUCKLAND, June 14.

The Taupo Totara Timber Company, Ltd, Putaruru, will raise $491,167 in an issue of convertible notes at a premium. It will also seek $250,000 in debentures, of which part will be used to convert maturing stock totalling $150,000. Both issues are being made to provide extra working capital also.

The issue of convertible notes win be made in the ratio of one note for every eight shares held at July 13.

The 50c notes will be issued at a premium of 25c each, and will bear interest at the rate of 7) per cent.

Conversion will be in the ratio of one 50c share for every note held on August 31, 1976. The issue is believed to be the second in which convertible notes are being issued at a premium. The first was that of Smith and Brown, Ltd, at a premium of 10c a 50c note in 1964.

In 1965, Taupo Totara made a note issue of one for two at par, but the conversion ratio was 2 shares for 3 notes.

This gave the shares issued in October last year a cost of 75c each. The shares to be issued in 1976, in conversion of the forthcoming note issue, will also cost 75c each. After the note conversion last year, and the takeovers of K.D.V. Industries and the Matakana Milling and Export Corporation. Taupo Totara capital has risen from $1,335,550 to $2,619,560. At March 31, 1970, the company had $500,000 outstanding in debentures. Of this amount. $150,000 will mature on September 30, $200,400 on September 30, 1976, and $149,600 on September 30, 1981. The company last week announced a 44.4 per cent rise in profit to a record $429,926.

This included eight months trading by K.D.V. but none of Matakana. The take-over bid for the latter was declared unconditional just after the balance date.