28 



THE CUBA REVIE W 



Cuban Financial Matters 



Sevilla-Biltmore Hotel Corporation 



Halsey, Stuart & Co., Inc., and Laden- 

 burg, Thalmann & Co. are offering a new 

 issue of $2,000,000 Sevilla-Biltmore Hotel 

 Corporation first mortgage 15-year, 7^ 

 per cent, sinking fund gold bonds at a price 

 of 100 and accrued interest to yield 7>4 per 

 cent. 



The Sevilla-Biltmore, formerly the Se- 

 villa Hotel, which was purchased in 1919 

 by John McE. Bowman and his associates, 

 is one of the leading hotels in Havana. 

 Upon completion of the new addition it 

 w'ill be the largest hotel in the West Indies. 



The proceeds of the financing will be 

 applied to the construction costs and equip- 

 ment of the new addition to the property, 

 which will be a nine-story modern fireproof 

 hotel building and with the present hotel 

 will have a total of about 352 guest rooms. 

 The new addition will be located on the 

 Prado, Havana's principal throughfare, 

 which will be connected with the present 

 hotel by an arcade through the addition. 



The bonds are a direct obligation of the 

 Sevilla-Biltmore Hotel Corporation and are 

 secured by a direct first mortgage on the 

 entire hotel property of the corporation, 

 which obligates itself to secure at least 

 $400,000 by the sale of additional preferred 

 stock. 



Net earnings of the present Sevilla-Bilt- 

 more Hotel for 1921 available for interest, 

 as reported by independent auditors, were 

 in excess of the annual interest requirements 

 of this issue. Based on operations for 1921, 

 one of the most unfavorable years in the 

 history of Cuba, independent engineers 

 have estimated that future earnings appli- 

 cable to taxes and interest charges on these 

 bonds, after completion of new addition, 

 will amount to $274,364 per annum. 



In addition to the above, the corpora- 

 tion, from applications already received, 

 estimates that it will realize approximately 

 $50,000 per annum from the rental of 

 space in the new arcade, which indicates 

 annual net earnings before interest and 

 taxes of over $320,000. The mortgage pro- 

 vides for a sinking fund, commencing May 

 1, 1926, payable in equal semi-annual in- 

 stalments equivalent to 3 per cent, of the 



greatest face amount of bonds at any one 

 time outstanding. 



Camaguey Sugar Company 



An issue of $6,000,000 first mortgage 

 sinking fund bonds of the Camaguey 

 Sugar Company (Compania Azucarera de 

 Camaguey, S. A.), a Cuban corporation, is 

 being offered by the National City Com- 

 pany at 97^4 and interest, at which price 

 the bonds yield about 7.25 per cent. The 

 issue is dated October 15, 1922, and ma- 

 tures October 15, 1942. A minimum sink- 

 ing fund commencing in 1923, according to 

 the bankers, will provide for the retire- 

 ment of one-half of the issue before ma- 

 turity. The purpose of the issue is said 

 to be to raise funds to be used in part 

 to pay for property recently acquired, to 

 complete improvements to properties and 

 to increase working capital. 



Upon thirty days' notice from the com- 

 pany the bonds are redeemable at 105 and 

 interest, on any interest date. Security 

 back of the loan, according to the bankers' 

 statement, is a direct first mortgage on all 

 the mortgageable property of the company, 

 comprising 26.000 acres of sugar growing 

 land, three mills, railroads and equipment. 



The American Sugar Refining Company 



PREFERRED DIMDEND 



On the preferred stock a dividend of 

 1^ per cent being the 124th consecutive 

 dividend thereon ; payable on the second 

 day of January, 1923, to stockholders of 

 record on the first day of December, 1922. 



The transfer books will not close. 



Guantanamo Sugar Company 



The board of directors has declared a 

 dividend of $2 per share on the preferred 

 stock, for the quarter ending December 

 31, 1922, payable January 2, 1923, to stock- 

 holders of record at the close of business 

 December 15, 1922. The transfer books 

 will not be closed. 



