L.W.R. plans $1m stock issue

Press, Volume CXI, Issue 32639, 22 June 1971, Page 25

L.W.R. plans $1m stock issue

Lane, Walker, Rudkin Industries, Ltd, Christchurch clothing manufacturer, will seek slm in an unsecured loan stock issue next month. The rates of interest offered will be H per cent for five years, 8 per cent for seven years, and 81 per cent for 10 years. A 15-year term at 8f per cent will also be offered.

The loan stock will be is- , sued under the provisions ; ef an open ended trust deed, ; with the Trustees Executors ; and Agency Company of New Zealand, Ltd, as Trustee for ’ the stockholders.

The company’s chairman and managing director (Mr N. H. Rudkin) said that he expected the issue to meet a favourable response from the public. The rates of interest were attractive and fully competitive on today’s market The company was in a very strong financial position^and although not speci-

flcally secured on any assets, the loan stock ranked ahead of ordinary and preference shareholders, he said.

Mr Rudkin said that secured creditors had a charge over less than 20 per cent of the total assets, the balance, affording ample cover for the loan stock holders.

There would be a provision in the trust deed that if the company made a debenture issue full rights would be given to the holders of loan stock to convert into the debentures for the unexpired portion of their term without change in the interest rate.

Interest payable on the issue was covered almost 11 times by profits, added Mr Rudkin.

The main purpose of the issue was to provide the necessary funds to finance increases that had taken place in sales and the planned expansion of the company’s activities, Mr Rudkin said. The issue will be underwritten by Hamilton, Hindin, Greene and Company, members of the Christchurch Stock Exchange.

DJIA. assumes liabilities

Trade creditors and bills payable of Drug Houses of Australia, Ltd, increased $83,814 to $9,399,509 at December 31 after the acquisition by the group of the pharmaceutical distributorship formerly owned by its parent, the Australian Industrial and Mining Corporation, Ltd.

D.H.A. also assumed responsibility for Austim’s bank overdraft, sundry creditors and other expenses. The bank overdraft at December 31 stood at $2,038,871, compared with nil a year before, and sundry creditors increased from $396,947 to $2,086,365. D,H.A.’s net profit in the year to December 31, was $669,055, compared with a $234,640 loss in the previous 18 months.