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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gen t o f the United States rCircular No. 5 9 7 5 1 L April 26, 1967 J Treasury Announces $22.1 Billion Refunding To All Banking Institutions, and Others Concerned, in the Second Federal Eeserve D istrict: The following statement was made public today by the Treasury Department: The Treasury today announced that it is offering holders o f the note issue maturing M ay 15, 1967 and the certificate, note, and bond issues maturing June 15 and August 15, 1967, an opportunity to exchange their holdings at attractive yields. The securities eligible fo r exchange and those being offered are as fo llo w s : Securities eligible for exchange and their maturity dates 41/4% Notes, D-1967 2i/2% Bonds, 1962-67 5 /1 5 /6 7 6 /1 5 /6 7 ) j P 514% Ctfs., A-1967 334% Notes, A-1967 4 % % Notes, E-1967 8 /1 5 /6 7 8 /1 5 /6 7 8 /1 5 /6 7 Securities offered in exchange and their maturity dates 434% 4 % % Notes, C-1968 Notes, B-1972 8 /1 5 /6 8 5 /1 5 /7 2 4 % % Notes, B-1972 5 /1 5 /7 2 r e r e f u n d in g \ ) The new 4 % percent notes are being offered at 99.95, which provides a yield o f 4.29 percent. The new 4 % percent notes are being offered at par. Details showing cash and interest adjustments fo r subscribers exchanging securities due June 15 and A ugust 15 appear in Table 1. A pproxim ate invest ment yields appear in Table 2. Both tables are attached. The public holds $9.0 billion o f the securities eligible fo r exchange and about $13.1 billion is held by Federal Reserve and Government Investment Accounts. Cash subscriptions fo r the new notes will not be received. The books will be open fo r three days only, on May 1 through M ay 3, fo r the receipt o f subscriptions. Subscriptions addressed to a Federal Reserve Bank or Branch, or to the Office o f the Treasurer of the United States and placed in the mail before midnight, May 3, will be considered timely. The paym ent and delivery date fo r the new notes will be M ay 15, 1967. Interest on the securities m aturing June 15 and August 15, 1967 will be adjusted as of May 15, 1967. The new notes w ill be made available in regis tered as well as bearer form . A ll subscribers requesting registered notes will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. This is a taxable exchange. Coupons dated M ay 15, 1967 on the securities m aturing on that date should be detached and cashed when due. Coupons dated June 15 and August 15, 1967 on the securities due on those dates must be attached. The May 15, 1967 interest due on registered securities will be paid by issue of inter est checks in regular course to holders o f record on A p ril 14, 1967, the date the transfer books closed. Interest on the 4 1/4z percent notes will be payable on August 15, 1967, and on February 15 and August 15, 1968. Interest on the 4% percent notes will be payable on November 15, 1967, and there after on M ay 15 and November 15 until maturity. Tables 1 and 2, referred to above, are printed on the reverse side. The official offering circulars and subscription forms will be mailed to reach you by Monday, May 1. Additional copies of this circular will be furnished upon request. A lfred H ayes, President. ( over) TABLE NO. 1 P a y m e n t s d u e to S u b s c r ib e r s in the M ay 1967 R e f u n d i n g (In dollars per $100 face value) Payment to ( + ) or by (— ) subscribers on account o f issue price o f offered securities Securities to be exchanged F or t h e 4 1 4 % Note, 5 /1 5 /6 7 ................. 2y2% Bond, 6 /1 5 /6 7 ............... F 41/4% 21/ 2 % 51/4% 33/4% 4% % 4 % % N ote op Accrued interest to May 15,1967 on securities exchanged to be paid to subscribers 8 /1 5 /6 8 +0.050000 — 0.050000 or t h e Note, 5 / 1 5 / 6 7 ................. Bond, 6 /1 5 /6 7 ............... Cert., 8 /1 5 /6 7 ................. Note, 8 /1 5 /6 7 ................. Note, 8 /1 5 /6 7 ................. 4 % % N ote of N et amount to be paid to subscribers — =» 1.037088 0.050000 0.987088 —a 1.037088 1.290746 0.921961 1.198550 — 0.937088 1.590746 0.771961 1.398550 5 /1 5 /7 2 — — 0.100000 +0.300000 — 0.150000 +0.200000 a Interest will be paid in regular course. T A B L E NO. 2 Investm ent R e t u r n s in th e M ay 1967 P r e r e f u n d i n g Securities eligible fo r exchange Approximate investment yield from 5/15/67 to maturity*- Approximate reinvestment rate for the extension period* 51/4% Cert., 8 /1 5 /6 7 33/4% Note, 8 /1 5 /6 7 4 % % Note, 8 /1 5 /6 7 4.72% 4.72 4.72 4.79% 4.77 4.79 1 Yields to nontaxable holders (or before tax) on issues offered in exchange based on prices of eligible issues (adjusted for payments on account of issue price). Prices are the mean of bid and ask quotations at noon on April 25, 1967. 2 Rate for nontaxable holder (or before tax). Office o f the Secretary o f the Treasury Office o f Debt Analysis
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