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FEDERAL RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, September 4, 1963

PRELIMINARY ANNOUNCEMENT
ADVANCE REFUNDING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted below a portion of a press statement issued today by the Treasury Department in
regard to an advance refunding:
The Treasury today announced that it will offer holders of $32.1 billion of outstanding Treasury
securities an opportunity to extend their holdings at attractive yields. Of this total, $23.0 billion
are held by the public.
The current offering combines a junior advance refunding with a “prerefunding,” that is, an
advance refunding of issues maturing within the next 12 months.
Holders of securities eligible for exchange have the option of exchanging them, as o f September 15,
1963, (with payment for the new bonds to be completed by and delivery to be made on September 18)
for three new issues as follows:
Securities eligible for exchange
and their maturity dates

Securities offered in exchange
and their maturity dates
Prerefunding

3V4% C o fI , B-1964 5 /1 5 /6 4
4 3 4% notes, A-1964 5 /1 5 /6 4
/
33
/4% notes, D-1964 5 /1 5 /6 4

3 % % bonds, 1968 (new issue)
4%
bonds, 1973 (new issue)
4V s% bonds, 1989-94 (addl. issue)

1 1 /1 5 /6 8
8 /1 5 /7 3
5 /1 5 /8 9 -9 4

‘Junior” Advance Refunding
33
/4%
4%
3s %
/s
3% %

bonds,
1966 5 /1 5 /6 6
notes, A-1966 8 /1 5 /6 6
notes, B-1967 2 /1 5 /6 7
notes, A-1967 8 /1 5 /6 7

4%
bonds, 1973 (new issue)
4Vs% bonds, 1989-94 (addl. issue)

8 /1 5 /7 3
5 /1 5 /8 9 -9 4

The exchanges will be made on the basis of par for par with accrued interest adjustments as of
September 15, 1963, and with cash payments to subscribers which will approximately equalize
current market values among eligible issues having different coupons and maturities, and provide
an attractive exchange value for each of the issues offered. The amount of the offering will be limited
to the amount of securities accepted in exchange. Cash subscriptions are not invited.
The exchanges will not be treated as a sale and purchase for tax purposes; therefore, there will
be no recognition of gain or loss for Federal income tax purposes solely on account of the exchange
of old for new securities.
The subscription books will be open beginning Monday, September 9, and will remain open
through Friday, September 13, 1963, for all classes of subscribers.
The official circulars, subscription forms, and other material containing additional details of the offering
will be mailed Thursday, September 5.
Yours very truly,
Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102