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FEDERAL RESERVE BANK OF N E W YORK Fiscal A gent of the U nited States C i r c u l a r N o . 6478 [ J a n u a r y 28, 197oJ To A l l Ba nk in g In s t i tu ti o n s , and O t h e rs Concerned, in the S e c o n d F e d e r a l R e s e r v e D i s t r i c t: The following statem ent was made public today by the T reasury Department: TREASURY ANNOUNCES $6.7 BILLION REFUNDING OF FEBRUARY 15 AND MARCH 15 MATURITIES The T reasu ry today announced that it is offering holders of the 4% T reasury Bonds of 1970, m aturing F ebruary 15, 1970, and the 2-1/2% T reasury Bonds of 1965-70, m atu r ing March 15, 1970, the right to exchange th eir holdings for an 18-month note, 3 -1 /2 -y ear note, o r a 7-y ea r note, at p ar. The notes being offered are: 8-1/4% T reasu ry Notes of Series F-1971, dated February 15, 1970, due August 15, 1971, 8-1/8% T reasu ry Notes of Series B-1973, dated F ebruary 15, 1970, due August 15, 1973, and 8% T reasu ry Notes of Series A-1977, dated February 15, 1970, due February 15, 1977. In the case of exchanges of the 2-1/2% bonds in tere st will be adjusted as of March 15, 1970. The paym ents due to and from su b scrib ers and the net amounts payable to su b sc rib e rs tendering 2-1/2% bonds are as follows (per $1,000 face value): Accrued interest payable If exchange is for notes 8-1/4% due 8/15/71 ............... . . . . 8-1/8% due 8 /1 5 /7 3 ............... 8% due 2/15/77 ............... Payable to subscriber to adjust for market value o f bonds To s ubscriber — 9 /1 5 /6 9 to 3 /1 5 / 70 on 2-1/2% bonds By subscriber — 2/15 to 3 /1 5 /7 0 on new notes Net amount to be paid to subscriber $ 1.14 $ 12.50 $ 6.38122 $ 7.25878 $ 1.04 $ 12.50 $ 6.28453 $ 7.25547 $ 0.95 $ 12.50 $ 6.18785 $ 7.26215 The public holds about $5.6 billion of the bonds eligible for exchange, and about $1.1 billion is held by F ederal R eserve and Government accounts. Cash subscriptions for the new notes will not be received. (Over) The books will be open for th ree days only, on F ebruary 2 through F ebruary 4, for the receip t of subscriptions. Subscriptions m ust be in an amount of $1,000 or a multiple thereof and may be paid for only with eligible m aturing secu rities. Subscriptions addressed to a F ed eral R eserve Bank or Branch, o r to the Office of the T re a su re r of the United States, and placed in the m ail before midnight, February 4, will be considered as tim ely. The paym ent and delivery date for the notes will be February 16, 1970. The notes will be made available in re g istere d as well as b e a re r form . All su b scrib ers requesting re g iste re d notes will be required to furnish appropriate identifying numbers as required on tax retu rn s and other documents subm itted to the Internal Revenue Service. Coupons dated F eb ru ary 15, 1970, on the bonds m aturing on that date should be detached and cashed when due. The F ebruary 15, 1970 in te re st due on reg istered bonds will be paid by issu e of in te re st checks in reg u lar course to holders of record on January 15, 1970, the date the tra n s fe r books closed. Coupons dated March 15, 1970, on the bonds due on that date m ust be attached. In te rest on the notes due August 15, 1971, will be payable on August 15, 1970, and F eb ru ary 15 and August 15, 1971. In terest on the notes due August 15, 1973, and F ebruary 15, 1977, will be payable on August 15, 1970, and th ereafter on February 15 and August 15 until m aturity. The official offering c irc u la rs and subscription form s for this offering will be mailed to reach you by Monday, F ebruary 2; however, if they do not reach you by that date, sub scrip tio n s may be entered by teleg ram o r le tte r, subject to confirm ation on the form s provided. Alfred Hayes, P resident.
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