International Harvester increases rates

Press, 3 September 1981, Page 18

International Harvester increases rates

International Harvester Credit Company of N.Z., Ltd, is offering 15.75 per cent on three and four year terms in its new prospectus for secured debenture stock, an increase of 0.25 per cent on the March issue. The two year term has been increased from 15 per cent to 15.5 per cent, and the five year and one year terms remain steady at 15.5 per cent and 14.5 per cent respectively. The issue seeks $6 million for the on-going business of the credit company in providing hire purchase finance

to customers buying tractors, trucks, combines, balers and construction equipment from International Harvester dealers in New Zealand, said the IHCC manager (Mr M. W. Houston). The issue was secured by a first floating charge over the company in favour of the trustee for the debenture stockholders. Investors also had the backing of an unconditional guarantee from the parent company, International Harvester Co. of N.Z., Ltd. A compound interest option was also available.

which could yield up to 22.1 per cent a year to investors. The prospectus reports that total assets of the company at April 30 were $29.1M, and showed an average growth of 22 per cent a year in the last four years. The asset backing for each $lOO of debenture stock and compound interest outstanding as at balance date was $162. The group net profit for the six months to April 30 was $386,000 providing an earning rate of 19 per cent on average shareholders’ funds.