New Britain herald., 1917-01-25
SHORT TERM NOTES
 FOR BRITISH LOAN
England BoGroWs Again Through
 American Syndicate

curHtllptlCN TOT SZ3O, O,bUO.OOO Onlted Kingdom of Great Britain and Ire Hand secured loan convertible gold notes are being received by nation- wide syndicate at prices of 9952 and interest for $1OO, O,OOO.O0O one-year notes and 9?.o7 for $15O, ,OOO, 900 two- year notes. The yield is 6 per cent. Tn both cases. Subscription books will close January 31, or earlier.
 This is the third short-term Brit ish loan to he placed in this market in addition to the $5OO,00O,OOO Anglo French loan. It is the first of the British loans to have conversion privilege, and it is this feature, coupled with the higher yield, that makes these notes more attractive to investors than the other issues.
 At the option of the holder they are convertible at any time up to maturity into 20-year 5 1-2 per cent. bonds of Great Britain and Ireland, due Feb. l. 1887, and not subject to the bonds are free from all the notes and the bonds are free from
 
 and are payable either in New York in United States gold coin or at the option of the holder in London at the fixed rate of exchange of $4,S65 to the. pound.
 This loan will be secured by de- posit of securities having value of at least $500, 100000 calculated on the basis of prevailing market prices and exchange rates. This collateral will be composed of two groups. the first having a value of S15O, 900, 900, being made up of securities of Amer ican municipalities aud corporations. Including the Canadian Pacific rail- way and obligations of the Govern mont of the Dominion of Canada, the colony of Newfoundland and Cana dian provincial and approved muni- cipal securities. In this group there twill be somewhat over $10O,O0O,000 ill value in United States municipal and corporation securities and Can adian Pacific railway issues.
 Group , will be composed of obli- gallons (either as maker or guaran- tor) of the following foreign govern- ments: Argentina, Chile, Cuba, Aus tralia, Egypt Japan, New Zealand and Union of south Africa; and obli- cations of approved railways in Ar gentina and the Grand Trunk railway of Canada and approximately $25,- 900, 900 in value of bonds and other obligations of dividend paying Brit sh railway companies. Aggregate value of this group will also be $150, 100000.
 Provision is made in the pledge agreement for maintaining the col lat ,Ni inSo at col Inc nf 120 per cent. of the amount of the loan outstanding. The British gov ernment may sell for cash any of the pledged securities in which event the proceeds of such sale shall be ap piled to the retirement of notes by purchase, if obtaina ble at or below the then redem ption prices, or other wise by redemption by lot.
 : The notes will be subject to re- demption in whole or in part at the option of the British government at n premium of 1 per cent for each year or any part of their unexpired life, but if so called for redemption they may be converted into 20-year 2 1-2 bonds at any time up to the date of redemption.
 The syndicate offering the notes is composed O J. P. Morgan & Co.,, who Nie the syndicate managers; First National Bank. New York; National City Co.,; Harris, Forbes & Co.,. Brown Bros. & Co.,; Wm. A. Read & O.; J. X w. Seligman & Co.,; Kidder, Peabody St Co; Lee, Higginson & Co., Lazard Freres; Kissel, Kinnicutt (. Co.,; White, Weld & Co.,; Guaranty Trust Co., of New York; Bankers Trust Co.,; Farmers Loan & Trust Co.,. Central Trust Co. of Illinois; Union Trust Co. of Pittsburgh; Continental X Commercial Trust x Savings Bank, Chicago; Marine National Bank of Buffalo. and the First & Old Detroit National Bank.