On December 8, 1938 arrangements were completed for long term loans to be evidenced by this Corporation's ten year 4% per cent. notes for an aggregate principal amount of $15,000,- 000. The loans will be made at a discount and the net interest cost to the Corporation will be 5.32 per cent. The notes will provide for amortization in the total amount of $300,000.
$400,000 and $500,000 at the end of the first, second and third years, respectively, and thereafter in the total amount of $1,200,000 per annum, and may be repaid by the Corporation in whole or in part on any interest date. Of the total principal amount, $10,000,000 will be taken by j the Export-Import Bank of Washington (D. C.) and the remaining $5,000,- 000 by a group of New York banks consisting of J. P. Morgan & Ca., The National City Bank of New York, The First National Bank of the City of New York, Bankers Trust Company and Guaranjy Trust Company of New York.
To the extent necessary, the proceeds of the above loans, together with other cash on hand, will be used by the Corporation to retire the balance outstanding of its Ten-Year 4% per cent. Convertible Debentures, and to pay its outstanding short term bank loans. The agreement made 30, 1938 with certain New York and referred to in the last quarterly letter to stockholders, will be cancelled. With the retirement of its Ten-Year 4% per cent. Convertible Debentures, due January 1, 1939, and
Text read from the printed page and cleaned; old type leaves the occasional error.