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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N IT E D ST A T E S Dallas, Texas, February 1, 1962 PRELIMINARY ANNOUNCEMENT EXCHANGE OFFERING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statem ent issued today by the Treasury D epartm ent in regard to current financing: Treasury to refund $11.7 billion of Treasury Notes maturing February 15, and April 1, 1962 The Treasury is offering holders of $11,731 million of four issues of Treasury notes m aturing February 15, 1962, and April 1, 1962, the right to exchange them for any of the following securities: 3 V2 percent Treasury Certificates of Indebtedness dated February 15, 1962, due February 15, 1963, at par; or 4 percent Treasury Notes dated February 15, 1962, due August 15, 1966 a t par. Cash subscriptions for the securities listed ab ove will not be received. The m aturing Treasury notes which may be exchanged for the new securities follow;: $647,100,000 3% percent Treasury Notes of Series A-1962, dated M ay 1, 1957, due February 15, 1962; $1,435,000,000 4 percent Treasury Notes of Series D-1962, dated February 15, 1959, due February 15, 1962; $9,098,000,000 3 V percent Treasury Notes of Series F-1962, dated November 15, 1960, 4 due February 15, 1962; $551,200,000 IV 2 percent Treasury Notes of Series EA-1962, dated April 1, 1957, due April 1, 1962. The subscription books will be open only on February 5 through February 7 for the receipt of subscriptions for any issue addressed to a Federal Reserve Bank or Branch, or to the office of the Treasurer of the United States, and placed in the mail before midnight February 7, will be considered as timely. The new securities will be delivered February 15, 1962. The certificates of indebtedness will be available only in bearer form but the Treasury notes will be made available in registered form, as well as bearer form. Interest on the new 3 V2 percent 12-month Treasury certificates of indebtedness will be paid on August 15, 1962 and February 15, 1963. Interest on the 4 percent Treasury note is payable semiannually on August 15 and February 15. Exchanges of the 3% percent, 4 percent, and 3 V* percent Treasury notes m aturing February 15, 1962, m ay be made for a like face amount of either the 3 V2 percent Treasury certificates m aturing February 15, 1963, or the 4 percent Treasury notes maturing August 15, 1966. Coupons dated February 15, 1962 on these m aturing notes should be detached by holders and cashed This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) when due. Holders of the IV2 percent Treasury Notes, Series EA-1962, maturing April 1, 1962, m ay exchange them for a like face amount of the new 3Vz percent Treasury certificates or the 4 percent Treasury notes. Exchanges of the IV 2 percent Treasury Notes, Series EA-1962, will be made with interest adjustm ents as of M arch 1, 1962. Coupons dated April 1, 1962, must be attached to the IV 2 percent Treasury notes when surrendered. Adjustm ents with the holders who exchange their IV 2 percent notes will be made as follows: 1 Va Percent Treasury Notes Exchanged for 3 V2 percent certificates, 2 /1 5 /6 3 4 percent note, 8 /1 5 /6 6 CREDITS PER $ 1 ,0 0 0 Accrued Interest on 1 V2 Percent Note to 3 /1 /6 2 Accrued Interest to 3 / 1 / 6 2 Difference to Be Paid to Subscriber $6.22253 $6.22253 $1.35359 $1.54696 $4.86894 $4.67557 CHARGES PER $ 1,000 Official circulars and subscription forms for the offering of Treasury certificates and Treasury notes will be mailed to reach all banking institutions by M onday, February 5, 1962. Yours very truly, W atrous H. Irons President