Citigroup to redeem all $480 million of series L preferred stock

By Wendy Van Sickle

Columbus, Ohio, Jan. 10 – Citigroup Inc. will redeem all $480 million liquidation preference of its 6.875% non-cumulative series L preferred stock, according to a news release.

The preferreds will be repaid on Feb. 12 at par of $25.00 plus the regular quarterly dividend payable on that date.

Citigroup said the redemption is part of its continuing liability management strategy, which is intended to “enhance the efficiency of its funding and capital structure.”

Citi’s tier 1 capital and tier 1 capital ratio will be “substantially unaffected” by the redemption, according to the news release.

Tier 1 capital will fall by $467.3 million and the tier 1 capital ratio by 4 basis points.

The redemption is “consistent” with the capital actions submitted to the Federal Reserve Board as part of the 2018 comprehensive capital analysis and review.

Citigroup is a New York-based bank.

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