Published on 5/18/2022 in the Prospect News Investment Grade Daily.
New Issue: Citigroup sells $6 billion floaters, fixed-to-floaters in four parts
By William Gullotti and Cristal Cody
Buffalo, N.Y., May 18 – Citigroup, Inc. priced a four-part, $6 billion offering of floating-rate and fixed-to-floating rate notes (A3/BBB+/A) at par on Tuesday, according to four FWP filings with the Securities and Exchange Commission and a market source.
The floating-rate series due May 24, 2025 is for $500 million, bearing interest at SOFR plus 137.2 basis points. The floaters will be callable at par plus interest on May 24, 2024 and on or after April 24, 2025.
The first fixed-to-floating rate series also matures May 24, 2025, totaling $1.5 billion. The series has a 4.14% starting coupon and was priced at Treasuries plus 145 bps, tighter than initial talk in the Treasuries plus 165 bps area. The interest rate resets to SOFR plus 137.2 bps on May 24, 2024.
The 2025 fixed-to-floaters will have a make-whole call at Treasuries plus 22 bps until the interest reset date, followed by a par call.
The second series of fixed-to-floaters, due May 24, 2028, also totals $1.5 billion and bears a 4.658% starting coupon. The series was priced at Treasuries plus 170 bps, tight to initial talk in the Treasuries plus 190 bps area. The interest rate resets to SOFR plus 188.7 bps on May 24, 2027.
The 2028 fixed-to-floaters are non-callable for the first six months, after which they will have a make-whole call at Treasuries plus 26 bps until the interest reset date. The notes will be callable in whole, but not in part, on that date, after which the notes will be non-callable for 11 months. Starting April 24, 2028, the notes will have a par call that may be exercised in whole or in part.
The third series of fixed-to-floaters is for $2.5 billion with an initial 4.91% rate, maturing May 24, 2033. The series was priced at Treasuries plus 195 bps, below initial talk in the Treasuries plus 220 bps area. The interest rate resets to SOFR plus 208.6 bps on May 24, 2032.
The 2033 fixed-to-floaters are likewise non-callable for the first six months, after which they will have a make-whole call at Treasuries plus 30 bps until the interest reset date. The notes will be callable in whole, but not in part, on that date, after which the notes will be non-callable for 11 months. Starting April 24, 2033, the notes will have a par call that may be exercised in whole or in part.
Each series is also callable in whole, but not in part, at any time for taxation reasons at par plus interest.
Citigroup Global Markets Inc. is the bookrunner for each series.
The investment bank and financial services company is based in New York.
| Issuer: | Citigroup Inc.
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| Amount: | $6 billion
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| Issue: | Senior notes
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| Bookrunner: | Citigroup Global Markets Inc.
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| Pricing date: | May 17
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| Settlement date: | May 24
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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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| Floaters
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| Amount: | $500 million
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| Issue: | Floating-rate notes
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| Maturity: | May 24, 2025
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| Co-managers: | Academy Securities, Inc., American Veterans Group, pbc, AmeriVet Securities, Inc., Bancroft Capital, LLC, CAVU Securities, LLC, Mischler Financial Group, Inc., Multi-Bank Securities, Inc. and Roberts & Ryan Investments, Inc.
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| Coupon: | SOFR plus 137.2 bps
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| Price: | Par
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| Yield: | SOFR plus 137.2 bps
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| Call options: | On May 24, 2024 and on or after April 24, 2025 at par plus interest; at any time for taxation reasons at par plus interest
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| Cusip: | 172967NR8
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| 2025 fixed-to-floaters
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| Amount: | $1.5 billion
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| Issue: | Fixed-to-floating rate notes
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| Maturity: | May 24, 2025
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| Co-managers: | Academy Securities, Inc., American Veterans Group, pbc, AmeriVet Securities, Inc., Bancroft Capital, LLC, CAVU Securities, LLC, Mischler Financial Group, Inc., Multi-Bank Securities, Inc. and Roberts & Ryan Investments, Inc.
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| Coupon: | 4.14%, resets to SOFR plus 137.2 bps on May 24, 2024
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| Price: | Par
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| Call options: | Make-whole at Treasuries plus 22 bps until May 24, 2024, followed by a par call; at any time for taxation reasons at par plus interest
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| Spread: | Treasuries plus 145 bps
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| Initial talk: | Treasuries plus 165 bps area
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| Cusip: | 172967NQ0
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| 2028 fixed-to-floaters
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| Amount: | $1.5 billion
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| Issue: | Fixed-to-floating rate notes
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| Maturity: | May 24, 2028
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| Senior co-managers: | Bank of China Ltd., London Branch, Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CastleOak Securities, LP, Commonwealth Bank of Australia, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Intesa Sanpaolo SpA, Loop Capital Markets LLC, Mashreqbank psc, MFR Securities, Inc., Mizuho Securities USA LLC, MUFG, nabSecurities, LLC, NatWest Markets Securities Inc., Nomura Securities International, Inc., OCBC Ltd., PNC Capital Markets LLC, R. Seelaus & Co., LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UBS Securities LLC and UniCredit Capital Markets LLC
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| Junior co-managers: | ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banco de Sabadell, SA, Blaylock Van, LLC, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, C.L. King & Associates, Inc., Cabrera Capital Markets LLC, CIBC World Markets Corp., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Desjardins Securities Inc., Emirates NBD Bank PJSC, Erste Group Bank AG, Fifth Third Securities, Inc., Huntington Securities, Inc., Independence Point Securities LLC, ING Financial Markets LLC, KeyBanc Capital Markets Inc., National Bank of Canada Financial Inc., Natixis Securities Americas LLC, Nordea Bank Abp, Penserra Securities LLC, Rabo Securities USA, Inc., RB International Markets (USA) LLC, Regions Securities LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank & Co., LLC, Skandinaviska Enskilda Banken AB (publ), Standard Chartered Bank, Swedbank AB (publ), Telsey Advisory Group LLC, Tigress Financial Partners, LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Westpac Capital Markets LLC
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| Coupon: | 4.658%, resets to SOFR plus 188.7 bps on May 24, 2027
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| Price: | Par
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| Call options: | Make-whole at Treasuries plus 26 bps between Nov. 24 and May 24, 2027; par call on May 24, 2027, then starting April 24, 2028 until maturity; at any time for taxation reasons at par plus interest
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| Spread: | Treasuries plus 170 bps
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| Initial talk: | Treasuries plus 190 bps area
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| Cusip: | 172967NS6
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| 2033 fixed-to-floaters
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| Amount: | $2.5 billion
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| Issue: | Fixed-to-floating rate notes
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| Maturity: | May 24, 2033
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| Senior co-managers: | Bank of China Ltd., London Branch, Barclays, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CastleOak Securities, LP, Commonwealth Bank of Australia, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Intesa Sanpaolo SpA, Loop Capital Markets LLC, Mashreqbank psc, MFR Securities, Inc., Mizuho Securities USA LLC, MUFG, nabSecurities, LLC, NatWest Markets Securities Inc., Nomura Securities International, Inc., OCBC Ltd., PNC Capital Markets LLC, R. Seelaus & Co., LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, UBS Securities LLC, UniCredit Capital Markets LLC
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| Junior co-managers: | ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banco de Sabadell, SA, Blaylock Van, LLC, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, C.L. King & Associates, Inc., Cabrera Capital Markets LLC, CIBC World Markets Corp., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Desjardins Securities Inc., Emirates NBD Bank PJSC, Erste Group Bank AG, Fifth Third Securities, Inc., Huntington Securities, Inc., Independence Point Securities LLC, ING Financial Markets LLC, KeyBanc Capital Markets Inc., National Bank of Canada Financial Inc., Natixis Securities Americas LLC, Nordea Bank Abp, Penserra Securities LLC, Rabo Securities USA, Inc., RB International Markets (USA) LLC, Regions Securities LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank & Co., LLC, Skandinaviska Enskilda Banken AB (publ), Standard Chartered Bank, Swedbank AB (publ), Telsey Advisory Group LLC, Tigress Financial Partners, LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Westpac Capital Markets LLC
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| Coupon: | 4.91%, resets to SOFR plus 208.6 bps on May 24, 2032
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| Price: | Par
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| Call options: | Make-whole at Treasuries plus 30 bps between Nov. 24 and May 24, 2032; par call on May 24, 2032, then starting April 24, 2033 until maturity; at any time for taxation reasons at par plus interest
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| Spread: | Treasuries plus 195 bps
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| Initial talk: | Treasuries plus 220 bps area
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| Cusip: | 172967NU1
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