Strong development for F.T.C.

Press, Volume CXIII, Issue 33408, 14 December 1973, Page 14

Strong development for F.T.C.

(Neto Zealand Press Association.)

AUCKLAND, December 12

The Farmers’ Trading Company, Ltd. is now engaged in a strong development programme much of which is concerned with expanding units which have proved inadequate for the volume of business offering, says the chairman (Mr R. H. Busfield) in the prospectus for $3 million registered debenture stock; funds from the issue would assist in this general expansion.

The company has reserved the right to accept oversubscriptions up to $1 million. Interest rates range from 7| per cent for five years to 8| per cent for 15 years. Applications will be accepted from today, and the issue will remain open until June 7, hnless earlier subscribed.

The issue is being underwritten by Buttle, Wilson, Rutherfurd and Company,

Auckland, in association with Associated Underwriters, Ltd. The auditor’s report in the prospectus showed that assuming that oversubscriptions to the full limit of $1 million were received the debenture stock would be secured against tangible assets of not less than $304 for every $lOO of debenture stock. The maximum annual interest payable on all such debenture stock would have been covered 5.3 times by available earnings.

The total sum of the debenture stock, including bank stock, and prior charges, would not exceed 40 per cent of total tangible assets of the company and the charging subsidiaries, plus undrawn bank accommodation secured by bank stock.

The total liabilities both secured and unsecured would not exceed the aggregate of 60 per cent of their total tangible assets, other than hire-purchase outstandings, and 80 per cent of their adjusted hire purchase cutstandings.