Commercial $10M secured bearer notes by Fletchers

Press, 24 October 1978, Page 20

Commercial $10M secured bearer notes by Fletchers

Fletcher Holdings, Ltd has become the first public company to offer, in New Zealand, secured bearer notes. | Its $lO million issue offering U; per cent for a five year term, opens on Monday, October 16, 1978 and is fully underwritten. This follows the successful issue of bearer notes in August," by. Development Finance Corporation. The notes are in $lOOO denominations and have attached five cheques for each (year’s interest from 1979 to (1983. The interest date is (November 15 in each year. | The managers of the issue are the R. A. Jarden and Co., Development Finance Corporation of New Zealand, the National Bank of New Zealand, Ltd., and Marac Corporation, Ltd. Subscriptions to the issue close on November 3. There is no provision to accept over-sub-scriptions. The managers have prepared an Offering Memorandum giving details of the issue, its security and the activities and operations of the Fletcher Group. The notes are secured by first (ranking Fletcher Holdings, Ltd debenture stock issued to the noteholders’ trustee. ( The net proceeds of the issue are expected to be

$9,635,000 and will be used to refinance local and overseas loan maturities falling due in the period to June 30, 1979, and to further develop business operations. The maturity of term borrowings includes $17.3M. duel in the year ending March, 1980, $16.3M in the follow-] ing year, and $13.7M in ! 1982.' The first half profit of the] Fletcher group will be down by 20 per cent, the directors forecast in the documents supporting the company's offer of bearer notes, but the full year’s profit should be steady, they say. The directors consider that the reduced level of demand in the New Zealand economy, which has restricted growth since mid-1977, might continue for at least a further two years. The net profit for the full current year will not be materially less than last year’s record $15,251,000. The company auditors, in their report state that the asset backing for each $lOOO secured bearer notes is not less than $2730. Stock exchange listing is being sought. R. A. Jarden and Co., Development Finance Corporation, and Marac

Corporation have undertake.to maintain a secondare market in the notes, so th a'; the notes can be readilj traded throughout their life. Applications for the notes can be made through any members of the stock exchange or any branch of the National Bank or Marac. The issue has been underwritten by the managers in conjunction with the following underwriters:— Bank of New Zealand, Bidwill, Wakeman, Paine and Co., Challenge Securities, Ltd., ChaseN.B.A. New Zealand Group, Ltd., Francis, Allison, Symes and Co., Harcourt, Lonquet, Hume and Co., Jordan, Sandman, Smythe and Cd„ N.Z.I. Securities. Ltd., O’Connor Grieve and Co., J. S. and S. M. Satterthwaite, South Pacific Merchant Finance, Ltd. The photograph shows at the signing of documents finalising Fletcher Holdings, Ltd. $10,000,000 secured bearer notes due .1983 — sitting (left to right) K. I. A. Taylor (R. A. Jarden and Co.); J. S. Fletcher (Fletcher Holdings); J. M. Hunn (D.F.C.); and H. A. Fletcher (Fletcher Holdings); standing: B. E. Johnson (R. A. Jarden;) B. V. Walsh (Marac); and P. S. Willcocks (National Bank).