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.
See more on the preference share issue and Instant Finance's recent trading performance here.
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5 Comments
Where to start, if you have nothing that kind of defines you are a bigger risk than normal...hence pay a higher rate.
Shock, horror maybe do what I do and save for the item or use interest free sparingly....ie I limit myself to 1 big ticket item such as a fridge and wait.
Go "without" indeed, maybe when you have to put your saved cash into a something you think, do I really need it. We are saving for a kitchen, we really need it so our family didnt go on holiday this year and very probably wont next year as well as it will take 2 years...
Debt is a dangerious thing, having a high rate should warn you.
regards
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