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Press, Volume CXIV, Issue 33434, 16 January 1974, Page 16

International Harvester i Credit Company of New Zealand, Ltd, the finance offshoot of International Harvester Company of New Zealand, Ltd, yesterday filed its prospectus for an issue at par of $1,000,000 guaranteed first charge debenture stock. The terms range from six) months at 51 per cent to six-10 years at 7} per cent — the maximum rate permitted by law. The company will review the rates payable as soon as this is permitted, and will increase them by | perj cent for terms of less than! three years, 1 per cent on) stock maturing from three to) five years, and per cent) on stock with longer terms, j This would give interest!

rates ranging from 6 per cent] for six-months stock to 8J per cent for six-years stock. Interest will be paid six-1 monthly, and the issue is guaranteed unconditionally as to principal and interest by the parent company. The New Zealand Insurlance Company, Ltd, is the) trustee for debenture stock-j holders. The stock of this issue) ranks equally in all respects) with all previously issued' stock ($922,300) and all fut-i jure stock which may be issued. The trust deed provides ’that the aggregate of stock [and prior charges shall not ; exceed 70 per cent of total ! tangible assets, and that total

liabilities shall not exceed the lesser of 87| per cent of total tangible assets or six times the shareholders’ funds.

All requirements of the Stock Exchange Association of New Zealand have been complied with, and stock exchange listing has been applied for. The funds are required to assist the company’s expanding requirements for finance brought about by increased

sales of International Harvester products. Sales of I.H.N.Z. for the latest year to October 31 were a record $23,660,297, and group net profit rose 66 per cent, to $1,295,492. Shareholders’ funds totalled $8,509,233, and total tangible assets were $19,285,923: the company has seven branches and 47 franchised dealers, and employs more than 450 people. The photograph shows the board of directors of International Harvester Company of New Zealand, Ltd, inspecting a motor assembly on the shop floor. The directors are, from left to right, W. R. Harper (chairman and managing), G. C. Treeby (manager [supply and inventory), R. A. Young (legal counsel), J. B. Miller (comptroller), A. J. A. Dewar (secretary), and G. B. Davison (director of marketing). The board of the finance company is the same as that of the parent company.