In this section
Offers for readers
Follow the news from interest
The comment stream
- 1 of 26249
- 1 of 369
The news stream
- Tuesday's Top 10 55
- Wheeler’s calculated gamble 29
- Opposition eyes new monetary policy 28
- More house price gains seen 27
- What will become of Tiwai’s workers? 18
- Act now on house prices 16
- 'Mathematical calculations back up fees' -ANZ 13
- Greens drop money printing plan 11
- Monday's Top 10 at 10 10
- BNZ sweetens KiwiSaver deal 8
Instant Finance raises NZ$12 mln through redeemable preference share issue promising 9% annual dividend
By Gareth Vaughan
Instant Finance, the personal lending specialist that uses former rugby league star Stacey Jones to front its TV advertisements, has raised NZ$12 million through an issue of redeemable preference shares that'll pay a 9% annual dividend.
Instant Finance had been looking to raise at least NZ$10 million, plus up to another NZ$2 million through oversubscriptions.
It sought the money to replace two previous redeemable preference share issues, dating from 2008, worth a combined NZ$8.6 million, which were due for repayment this month.
Instant Finance has said any money raised in addition to what it owed on its maturing preference shares will be used to provide cash reserves to help fund potential future growth.
Louise Minett, Instant Finance's investment manager, said most of the new preference shares went to the company's existing preference shareholders and its previous debenture holders, although there were a few new investors.
A cumulative preferential dividend calculated at the rate of 9% per annum on the issue price will be paid quarterly. Full imputation credits will be attached to the dividends. Instant Finance was paying a weighted average interest rate of 13.82% on its previous redeemable preference shares.
This article was first published in our email for paid subscribers. See here for more details and to subscribe.