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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

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