Stocks, Hldgs §4m issue

Press, Volume CXVI, Issue 34132, 20 April 1976, Page 20

Stocks, Hldgs §4m issue

■ \ Z. Press Association> |. SYDNEY. Stocks and Holdings Ltd. Sydney propertv developer.. l ; is seeking sAust4m by a’ convertible note issue to< shareholders and existing i convertible note holders-. The company is offering four million listed fully con vertible notes of 100 c each at par, due for redemptionl lon May' 31, 1983. The notes will carry an annual interest, rate of 10.5 • per cent, and will be con-[ 'vertible into ordinary shares! [on the basis of one share lor [every five notes held from; May IMS, and at specific! [times thereafter. The issue will be under- . written to three million! 'notes by Bain and Co., Ltd. [members of the Sydney! Stock Exchange, who have: reserved the right to nomin-! ate allottees of two millionj of the notes. The high cou-i pon rate partly compensates! for the apparently high conversion price. The directors say the issue is being made to reduce short-term borrowings, and meets the terms of the! old guidelines for convert-j [ible note issues. Under the new guidelines,! before Federal Parliament,! (there will be no minimum [ -period before conversion;! [companies will be able to:' I offer inducements to note! [holders to convert early, and! Ivarv interest rates.