Published on 10/26/2020 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Citigroup details $2.5 billion 0.776% fixed-to-floaters due 2024
By Devika Patel
Knoxville, Tenn., Oct. 26 – Citigroup Inc. offered further details, including the coupon terms, about a $2.5 billion sale of 0.776% fixed-to-floating rate senior notes due Oct. 30, 2024 (A3/BBB+/A) that priced at par on Friday at a spread of Treasuries plus 58 basis points, according to an FWP filed with the Securities and Exchange Commission.
The notes will reset on Oct. 30, 2023 to a floating rate equal to SOFR plus 686 basis points.
Initial price talk on the social housing bonds was in the high 70 bps over Treasuries area.
Citigroup Global Markets Inc. was the bookrunner.
The New York-based financial services company plans to use the proceeds to finance or refinance affordable housing assets under the company’s social bond framework.
| Issuer: | Citigroup Inc.
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| Amount: | $2.5 billion
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| Maturity: | Oct. 30, 2024
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| Description: | Fixed-to-floating rate senior social housing notes
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| Bookrunner: | Citigroup Global Markets Inc.
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| Joint lead managers: | Blaylock Van, LLC, CastleOak Securities LP, Loop Capital Markets LLC and Samuel A. Ramirez & Co. Inc.
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| Co-managers: | Academy Securities Inc., Great Pacific Securities, MFR Securities Inc., Roberts & Ryan Investments Inc. and Siebert Williams Shank & Co. LLC
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| Coupon: | 0.776%; resets on Oct. 30, 2023 to floating rate equal to SOFR plus 686 bps
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| Price: | Par
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| Spread: | Treasuries plus 58 bps
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| Call features: | Non-callable until April 30, 2021; make-whole call at Treasuries plus 10 bps until Oct. 30, 2023, then a par call
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| Trade date: | Oct. 23
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| Settlement date: | Oct. 30
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Fitch: A
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus high 70 bps area
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