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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 S T A T E S Dallas, Texas, April 26, 1962 PRELIMINARY ANNOUNCEM ENT EXCHANGE OFFERING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued by the Treasury Department today in regard to current financing: Treasury to Refund $11.7 Billion of Securities Maturing May 15 and June 15 The Treasury is offering holders of Treasury securities maturing M ay 15 and June 15, 1962, aggregating $11,683 million, the right to exchange them for any of the following securities: 3 Vi percent Treasury Certificates of Indebtedness to be dated M ay 15, 1962, and to mature M ay 15, 1963, at par; 3 % percent Treasury Notes to be dated M ay 15, 1962, and to mature February 15, 1966, at 99.80, to yield about 3.68 percent to maturity; or 3 % percent Treasury Bonds to be dated M ay 15, 1962, and to mature November 15, 1971, at 99.50, to yield about 3.94 percent to maturity. Cash subscriptions for the new securities will not be received. The maturing issues eligible for exchange are as follows: $5,509 million of 3 percent Treasury Certificates of Indebtedness of Series A -1962, dated M ay 15, 1961, maturing M ay 15, 1962; $2,211 million of 4 percent Treasury Notes of Series E-1962, dated April 14, 1960, maturing M ay 15, 1962; and $3,963 million of 2 Vi percent Treasury Bonds of 1959-62, dated June 1, 1945, matur ing June 15, 1962. The subscription books will be open only on April 30 through May 2 for the receipt of subscriptions. 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, M ay 2, will be considered as timely. The new securities will be delivered M ay 15, 1962. Interest on the 2 Vi percent bonds which are exchanged will be paid through M ay 15, as indicated below. The new certificates of indebtedness will be available only in bearer form. The new notes and bonds will be made available in registered as well as bearer form. Interest on the 3 Vi percent certificates of indebtedness will be paid on November 15, 1962, and M ay 15, 1963. Interest on the 3 % percent notes will be paid on August 15, 1962, and semi annually thereafter on February 15 and August 15. Interest on the 3 % percent bonds will be paid on November 15, 1962, and semiannually thereafter on M ay 15 and November 15. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Exchanges of 3 percent certificates and 4 percent notes Exchanges of the 3 percent certificates and 4 percent notes maturing M ay 15, 1962, may be made for a like face amount of any of the securities included in this exchange offering. Coupons dated M ay 15, 1962, on the maturing 3 percent certificates and 4 percent notes in bearer form should be detached by holders and cashed when due. Subscribers to the new 3 % percent notes and Vfo percent bonds will be paid, respectively, $2.00 and $5.00 per $1,000, representing the discount on these securities. Exchange of 2V* percent bonds Exchanges of the 2 V4 percent bonds maturing June 15, 1962, may be made for a like face amount of any of the securities included in this exchange offering. Coupons dated June 15, 1962, must be attached to the maturing 2rA percent bonds in bearer form when surrendered for ex change. Payments will be made to holders who exchange their 2Va percent bonds as follows: 2 'A Percent Bonds Exchanged tor 3Vi% certificates 5 /1 5 /6 3 3 % % notes 2 /1 5 /6 6 3 7/s % bonds 1 1 /1 5 /7 1 CREDITS PER $1,000 Accrued Interest Discount on 2 % Percent on New Bonds to 5/15/62 Securities $9.33379 9.33379 9.33379 — $2.00 5.00 Amount to be Paid to Subscriber $9.33379 11.33379 14.33379 Official circulars and subscription forms for the three new issues of Treasury securities will be mailed to reach all banking institutions by Monday, April 30, 1962. Yours very truly, Watrous H. Irons President
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