FURTHER DEBT ECONOMIES
Moreover, along the lines of a fresh issue of Preferred Ordinary Shares, a further economy in debt charges is to be secured. The Company proposes to make an issue of 1,000,000 Preferred Ordinary Shares of £1 each, carrying 5 per cent. interest, and to convert the Ordinary Shares at present issued, and also the Preferred Ordinary Shares when fully paid into Ordinary Stock and Preferred Ordinary Stock respectively. These new Preferred Ordinary Shares will be issued at 20s. 9d. and the proceeds will be utilised in the first place to repay £800,000 5/ per cent. First Mortgage Debenture Stock of the Great Western Colliery Company, Limited. By this transaction the Company will increase its cash resources, and at the same time the annual dividend on the Preferred Ordinary Shares will amount to £50,000 as compared with £52,000 per annum required for interest and Sinking Fund of the Great Western Colliery Company Debenture Stock. Both the Ordinary and the New Preferred Ordinary offer fairly attractive yields, the Preferred Ordinary giving a well- secured yield of just over 41 per cent., while on the basis of the current dividend of £5 4s. per cent. per annum, the Ordinary Shares offer a fractionally higher yield.
Previous page
