F.T.C. seeks $7M in debentures

Press, 17 March 1982, Page 31

F.T.C. seeks $7M in debentures

PA Auckland Farmers Trading Company, Ltd, New Zealand’s largest retail organisation, of Auckland, is making a $7 million debenture issue with the right to accept a further S2M in oversubscriptions. Interest rates offered are 17 per cent a year for two years. 17.5 per cent for three and five years and 17.25 per cent for seven and 10-year terms.

The basic issue of S7M has been underwritten by Buttle, Wilson and Co., the Auckland broking firm. The issue is now open and will close on June 30 unless earlier fully subscribed. The minimum investment is $lOO and thereafter in multiples of $lOO. There is no maximum investment.

The company has debenture stock of $475,500 due to mature on March 31.. Holders of debenture stock due ■ to mature then will have a prior right of conversion on maturity into the current issue. A sum of $475,500 will be. set aside from the issue until March 31, in order that holders have the option to convert. After this date the sum will become available

for public subscription. A similar right will be also available to stcok holders of stcok due to mature on September 30. In a statement contained in the prospectus for the issue, the chairman, Mr R. H. Busfield said the new issue would provide part of the finance required for additional working captial which was necessary for the increased business established at virtually all the company outlets. The company was engaged in a strong development programme much of which was concerned with expanding units which had proved inadequate for the volume of

business offering, he said. The increased profit trend which was evident during the first six months of the current financial year had been maintained during the first four months of the secondhalf. The directors were confident that the result for the full financial year would show a significant improvement on the previous year, he said. The company last made, a debenture issue in 1973 for S3M, with oversubscriptions of $500,000. Interest rates offered then were 7.5 per cent for five years, 7.75 per cent for seven years, 8 per cent for 10 years and 8.5 per cent for 15 years.