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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, July 28, 1965

PRELIMINARY ANNOUNCEMENT
EXCHANGE OFFERING

To All Banking Institutions a n d Other Concerned
in the Eleventh Federal Reserve District:

There is quoted below a press statement issued today by the Treasury Department in regard to current
financing:
Treasury Announces August 13 Refunding Terms

The Treasury today offered to holders of $7,268 million of 3% % Treasury Notes of
Series D-1965, dated February 15, 1964, maturing August 13, 1965, a choice between a 4%
18-month note and an additional amount of 4% bonds maturing February 15, 1969. Public hold­
ings of the maturing securities amount to $3.2 billion; the remaining $4.0 billion is held by the
Federal Reserve and Government Investment Accounts. The two securities offered in exchange
are as follows:
4% Treasury Notes of Series C-1967, dated August 13, 1965, and maturing Febru­
ary 15, 1967, at 99.85 (to yield about 4.10% ); or
An additional amount of 4% Treasury Bonds of 1969, dated August 15, 1962, and
maturing February 15, 1969, at 99.45 (to yield about 4.17% ). About $1,844 mil­
lion of the 4% bonds are now outstanding.
Cash subscriptions for the new securities will not be received.
The books will be open for three d ays only, on August 2 through August 4, for the receipt
of subscriptions. Subscriptions 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, August 4, will be
considered as timely. The payment and delivery date for the new securities will be August 13, 1965.
The new notes and bonds will be made available in registered as well as bearer form. All subscribers
requesting registered notes and bonds will be required to furnish appropriate identifying numbers
as required on tax returns and other documents submitted to the Internal Revenue Service.
Exchanges of the maturing notes will be made in a like face amount of the new securities as
of August 13. Coupons dated August 13, 1965, on the maturing notes should be detached and
cashed when due. The final interest due on registered maturing notes will be paid by issue of interest
checks in regular course to holders of record on July 13, 1965, the date the transfer books closed.
A cash payment will be made to subscribers of $1.50 per $1,000 (on account of the issue price)
for exchanges for the new note and $5.72099 per $1,000 (representing $5.50 per $1,000 on account
of the issue price of the bonds and $0.22099 per $1,000 for accrued interest on the bonds from
August 13 to August 15, 1965 — because the bonds will be delivered without the August 15, 1965,
coupons) for exchanges for the 4% bonds.
Interest on the 4% notes will be payable on February 15 and August 15, 1966, and Febru­
ary 15, 1967. Interest on the 4% bonds will be payable on February 15, 1966, and thereafter on
February 15 and August 15 until maturity.
The official circulars and subscription forms for the new issues of Treasury bonds and notes will be
mailed Thursday, July 29; however, if the forms do not reach you by Wednesday, August 4, subscriptions may
be entered by mail or telegram, subject to confirmation on official subscription blanks.
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)


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