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Fletcher long-term rate 9.5 p.c.

(New Zealand Press Association) AUCKLAND. Fletcher Holdings, Ltd, is issuing a prospectus for a new debenture issue which will offer 11 per cent for a four-year term, but only 9} per cent for ten-year stock.

The company’s s3m issue, which opened in September, has been fully-subscribed, and closed. The new issue is for s2m, with right to accept oversubscriptions to another slm. The interest rates will be: three years, 10 per cent four years, 11 per cent, five years,. 10J per cent, seven years, 10 per cent, and 10 years, 9| per cent. This compares with interest rates of 9 per cent for three years, 9| per cent for five years, and 10 per cent for seven, 10 and 15 years in the issue just closed.

Directors of Fletcher Holdings say that the new interest scale demonstrates their belief that interest rates are declining. The issue is to provide working capital requirements of new projects nearing completion: to provide a higher level of working funds, necessitated by cost inflation, and to consolidate the group’s financial position.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19750225.2.110

Bibliographic details

Press, Volume CXV, Issue 33777, 25 February 1975, Page 14

Word Count
181

Fletcher long-term rate 9.5 p.c. Press, Volume CXV, Issue 33777, 25 February 1975, Page 14

Fletcher long-term rate 9.5 p.c. Press, Volume CXV, Issue 33777, 25 February 1975, Page 14