New Issue: Citigroup sells $5.5 billion of floating-rate notes and fixed-to-floating rate notes

By Cristal Cody

Chicago, April 28 – Citigroup Inc. sold $5.5 billion of notes in three parts (A3/BBB+/A), comprised of two fixed-to-floating rate tranches and one floating-rate part, according to multiple FWP filings with the Securities and Exchange Commission.

The sole floating-rate tranche consists of $500 million of notes due May 1, 2025 that priced with a floating rate based on SOFR plus 66.9 basis points. The interest rate resets quarterly. The notes priced at par.

The tranche can be redeemed at the option of the issuer at par one year prior to maturity.

The first fixed-to-floating rate tranche is a $2 billion series maturing on May 1, 2025. The notes start at a 0.981% fixed rate and then convert to a floating rate in the last year based on SOFR plus 66.9 bps. The notes priced with a spread of Treasuries plus 63 bps. Price talk had the notes expected in the 80 bps area, a market source noted.

The tranche priced at par. The notes are redeemable with a make-whole premium starting on Nov. 4 through May 1, 2024. After May 1, 2024, the notes can be redeemed at par.

The longest-dated tranche is a $3 billion note due May 1, 2032 which starts with a 2.561% rate that converts to a floating rate in the final year at SOFR plus 116.7 bps. The notes priced at par and came with a spread of Treasuries plus 95 bps, low to initial price talk in the 120 bps area.

Citigroup Global Markets Inc. is the bookrunner.

The issuer is a New York-based financial services company.

Issuer:	Citigroup Inc.
Issue:	Floating-rate and fixed-to-floating rate notes
Amount:	$5.5 billion
Bookrunner:	Citigroup Global Markets Inc.
Trade date:	April 27
Settlement date:	May 4
Ratings:	Moody’s: A3
	S&P: BBB+
	Fitch: A
Distribution:	SEC registered
Floating-rate notes
Amount:	$500 million
Issue:	Floating-rate notes
Maturity:	May 1, 2025
Senior co-managers:	Commerz Markets LLC, Desjardins Securities Inc., Huntington Securities, Inc., MFR Securities, Inc., National Bank of Canada Financial Inc., Natixis Securities Americas LLC, Nomura Securities International, Inc., Rabo Securities USA, Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank and Swedbank AB (publ)
Junior co-managers:	Academy Securities, Inc., Cabrera Capital Markets LLC, Capital Institutional Services, Inc., CastleOak Securities, LP, Drexel Hamilton, LLC, Jefferies LLC, R. Seelaus & Co., LLC, Roberts & Ryan Investments, Inc. and Stern Brothers & Co.
Coupon:	SOFR plus 66.9 bps
Price:	Par
Yield:	SOFR plus 66.9 bps
Call features:	Callable at par starting May 1, 2024
2025 fixed-to-floaters
Amount:	$2 billion
Issue:	Fixed-to-floating rate notes
Maturity:	May 1, 2025
Senior co-managers:	BBVA Securities Inc., Deutsche Bank Securities Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, Samuel A. Ramirez & Co., Inc., Santander Investment Securities Inc., SG Americas Securities, LLC, TD Securities (USA) LLC and Westpac Capital Markets LLC
Junior co-managers:	Apto Partners, LLC, Bank of China Ltd., London Branch, BMO Capital Markets Corp., CIBC World Markets Corp., Commonwealth Bank of Australia, DBS Bank Ltd., DZ Financial Markets LLC, Great Pacific Securities, ICBC Standard Bank plc, Multi-Bank Securities, Inc., nabSecurities, LLC, Penserra Securities LLC, Regions Securities LLC, Roberts & Ryan Investments, Inc., Telsey Advisory Group LLC, Tigress Financial Group LLC and UniCredit Capital Markets LLC
Coupon:	0.981% initial rate; converts to SOFR plus 66.9 bps on May 1, 2024
Price:	Par
Spread:	Treasuries plus 63 bps
Call features:	Make-whole call from Nov. 4 until May 1, 2024; par call thereafter
Price talk:	Treasuries plus 80 bps area
2032 fixed-to-floaters
Amount:	$3 billion
Issue:	Fixed-to-floating rate notes
Maturity:	May 1, 2032
Senior co-managers:	Barclays, Blaylock Van, LLC, Capital One Securities, Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Netrex Capital Markets, LLC, Scotia Capital (USA) Inc. and UBS Securities LLC
Junior co-managers:	ABN Amro Securities (USA) LLC, AmeriVet Securities, Inc., ANZ Securities, Inc., Bancroft Capital, LLC, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, C.L. King & Associates, Inc., Guzman & Co., Intesa Sanpaolo SpA, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, MUFG, PNC Capital Markets LLC, Roberts & Ryan Investments, Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
Coupon:	2.561% initial rate; converts to SOFR plus 116.7 bps on May 1, 2031
Price:	Par
Spread:	Treasuries plus 95 bps
Call features:	Make-whole call from Nov. 4 to May 1, 2031; par call thereafter
Price talk:	Treasuries plus 120 bps area

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