I.H. offers top rate of p.c.

Press, Volume CXII, Issue 32847, 22 February 1972, Page 21

I.H. offers top rate of p.c.

The top interest rate in the $1,500,000 debenture issue of International Harvester Credit Company of New Zealand, Ltd, is 87 per cent, for the term of 8 years, the prospectus—dated February 22—shows.

I.H.C.C. is a wholly-owned subsidiary of International Harvester Company of New Zealand. Ltd. and has been acquired to assist with the expanding requirements for finance, in turn brought about by the increased sales of I.H. products. The purpose of the issue is to provide financing in New Zealand for new products sold by I.H. to dealers and customers, and to provide wholesale and retail financing for certain types of used goods accepted as trade-ins.

“In the past sales have sometimes been restricted because of lack of available

customer finance,” said Mr W. R. Harper, the chairman and managing director, in a

covering letter to the underwriter, Daysh Renouf and Company. The $1.5 million issue, with the right to accept oversubscriptions of $500,000, is unconditionally guaranteed by the parent company, and secured by a first floating charge over the whole of the undertaking, property and assets of I.H. New Zealand —including uncalled and unpaid capital.

The New Zealand Insurance Company, Ltd, is the trustee for the stockholders.

Sales increase Terms and rates are as follows: 6 months .... 5 J per cent 12 months .... 6} per cent 2 years .... 7{ per cent 3 years .... 7| per cent 4 years .... 7} per cent 5 years .... 8 per cent 6 years .... 8} per cent 7 years .... 8| per cent 8 years .... 8£ per cent Interest is payable at sixmonthly intervals. The company has made provision for redemption of stock prior to maturity in cases of hardship. Stock exchange listing of currencies of three years and longer has been applied for. All stock subscribed for is' payable in full on application. In the financial year to

October 31. International Harvester sales rose 8.6 percent to a record $15,409,530. However, the net profit suffered from cost escalation, and eased 2.7 per cent to $768,870; it represented an earning rate of 11.1 per cent on shareholders’ funds.