NAME OF FEATURE | THE GLEANER | FRIDAY, SEPTEMBER 13, 2024 25 Published July 30, 1978 APPLICATIONS IN excess of $4 million have been received by the Gleaner Company for its First Mortgage Convertible Debenture Stock 1981-92, which closed on Friday afternoon. A count of the applications shows that the issue has been over-subscribed, passing the target of $4 million which was set when the issue went on the local money market on Monday, July 3, this year. “We are extremely gratified at this response from the public,” the managing director of the company, Mr Oliver Clarke said yesterday. “We regard it as a massive vote of confidence in The Gleaner and a great show of support for the policies of the paper and the principles for which it stands.” A feature of the applications was the number of small investors who came in. Of the total number received, 30 per cent were for the lowest unit of $50, the multiple on which the issue was based. Another feature was the response from the staff of the company. There were some 300 applications from Gleaner employees and motor contractors, for amounts ranging from $50 to $500. Altogether, a total of over 2,000 applications were received – 60 per cent from the Corporate Area, 40 per cent from the country, representing a broad spread of support throughout the community, from the big financial groups to the small savers; and also representing 2,000 potential new owners of The Gleaner. Allotment of the issue will be done on Monday following the successful close of the issue; and certificates will be mailed out within seven days. Although the issue has been over-subscribed, all applicants will receive an allotment. Only the very large subscribers will have their applications scaled down. FLOOD IN FINAL WEEK At the beginning, the issue went off to a slow start, but the momentum steadily increased, and after 10 days, the minimum amount of $214 million was passed. As the closing date drew near, the applications began to come in at a faster rate and the $3-million mark was exceeded by last weekend. The final week saw the flow of applications rise to a flood, with the peak being reached on the final day, Friday. First announced by Mr Clarke at the end of March, the purpose of the issue is to allow the company to raise long-term funds to re-finance its existing debts, which at present total approximately $315 million repayable in the short-term. The prospectus, printed by the company at its own plant and distributed along with two issues of The Gleaner making it probably the widest circulated prospectus in the history of Jamaica was also distributed by the commercial banks and the four stockbrokers now doing business in Jamaica. The stockbrokers are: Pitfield, McKay Investments, Allpark Investments, Paul Chen Young and Associates, and Barita Investments. Trustees appointed for the issue were Royal Bank Trust (Jamaica) Limited, with which all the applications have been lodged. Payment of interest on the debenture will start on Tuesday, October 31, this year, and will follow thereafter at six-month intervals. The minimum interest begins at five per cent per annum, rising to 10 per cent towards the end of the 14-year ‘life’ of the loan. The first capital repayment will be made at the end of April 1981, at which time debenture holders will have their first opportunity to decide whether they will take a quarter of that capital repayment in cash or in shares in the Gleaner and thereby become some of the new owners of the company. THE GLEANER 190TH ANNIVERSARY FEATURE GLEANER STOCK OVER-SUBSCRIBED The Managing Director of the Gleaner Company, Mr Oliver Clarke, speaking on the Debenture Stock Issue to members of the St Andrew Lions Club on Wednesday, July 26, 1978, at the Mill Restaurant, Manor Park Plaza, Constant Spring. Others (from left) are: Miss Jennifer Eyre, an entrant in the Miss Jamaica (World) Beauty Contest; Mr Chris Armond, racing commentator; Mr Bernard Cridland, Lions District Governor; and Mrs Sally Asher, wife of the club president, Mr Bunny Asher. - $4-million mark passed; 2,000 potential new owners - Massive vote of confidence from public
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