Published on 12/3/2008 in the Prospect News Investment Grade Daily.
New Issue: Citigroup announces terms for $5.5 billion FDIC-backed notes in three tranches
By Andrea Heisinger
New York, Dec. 3 - Citigroup Inc. announced terms for its $5.5 billion of notes (Aaa/AAA/AAA) in three tranches under the Federal Deposit Insurance Corp. Temporary Liquidity Guarantee Program, according to an FWP filing with the Securities and Exchange Commission.
The $1 billion of two-year floating-rate notes priced at par to yield three-month Libor plus 55 basis points.
The $750 million of three-year floaters priced at par to yield one-month Libor plus 80 bps.
The $3.75 billion of 2.875% three-year fixed-rate notes priced at 99.752 to yield 2.962% with a spread of Treasuries plus 188.4 bps.
All of the notes are non-callable.
The two floating-rate tranches priced in line with talk, the source said, which was Libor plus 55 bps area for the two-year notes and one-month Libor plus 80 bps area for the three-year notes.
Bookrunner was Citigroup Global Markets. Joint lead managers were Banc of America Securities LLC, Goldman Sachs & Co., RBS Greenwich Capital Markets, J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.
Co-managers for the floating-rate tranches were Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Samuel A. Ramirez & Co, Inc., RBC Capital Markets Corp., SBK-Brooks Investment Corp., TD Securities (USA) LLC, Toussaint Capital Partners, LLC, UBS Securities LLC and Utendahl Capital Group, LLC.
Co-managers for the fixed-rate tranche were Barclays Capital Inc., Blaylock Robert Van LLC, BNP Paribas Securities Corp., Cabrera Capital Markets LLC, CastleOak Securities LP, Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Loop Capital Markets LLC, RBC Capital Markets Corp., Muriel Siebert & Co., Inc., TD Securities USA LLC, UBS Securities LLC and Williams Capital Group.
The financial services company is based in New York City.
| Issuer: | Citigroup Inc.
|
| Guarantor: | Federal Deposit Insurance Corp.
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| Issue: | FDIC-guaranteed notes
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| Total amount: | $5.5 billion
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| Bookrunner: | Citigroup Global Markets
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| Joint lead managers: | Banc of America Securities LLC, Goldman Sachs & Co., RBS Greenwich Capital Markets, J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
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| Trade date: | Dec. 2
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| Settlement date: | Dec. 9
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| Ratings: | Moody's: Aaa
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| Standard & Poor's: AAA
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| Fitch: AAA
|
|
|
| Two-year floaters
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| Amount: | $1 billion
|
| Maturity: | Dec. 9, 2010
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| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Samuel A. Ramirez & Co, Inc., RBC Capital Markets Corp., SBK-Brooks Investment Corp., TD Securities (USA) LLC, Toussaint Capital Partners, LLC, UBS Securities LLC, Utendahl Capital Group, LLC
|
| Coupon: | Three-month Libor plus 55 bps
|
| Price: | Par
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| Yield: | Three-month Libor plus 55 bps
|
| Call: | Non-callable
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| Price talk: | Libor plus 55 bps area
|
|
|
| Three-year floaters
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| Amount: | $750 million
|
| Maturity: | Dec. 9, 2011
|
| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Samuel A. Ramirez & Co, Inc., RBC Capital Markets Corp., SBK-Brooks Investment Corp., TD Securities (USA) LLC, Toussaint Capital Partners, LLC, UBS Securities LLC, Utendahl Capital Group, LLC
|
| Coupon: | One-month Libor plus 80 bps
|
| Price: | Par
|
| Yield: | One-month Libor plus 80 bps
|
| Call: | Non-callable
|
| Price talk: | One-month Libor plus 80 bps area
|
|
|
| Three-year notes
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| Amount: | $3.75 billion
|
| Issue: | Fixed-rate notes
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| Maturity: | Dec. 9, 2011
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| Co-managers: | Barclays Capital Inc., Blaylock Robert Van LLC, BNP Paribas Securities Corp., Cabrera Capital Markets LLC, CastleOak Securities LP, Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Loop Capital Markets LLC, RBC Capital Markets Corp., Muriel Siebert & Co., Inc., TD Securities USA LLC, UBS Securities LLC, Williams Capital Group
|
| Coupon: | 2.875%
|
| Price: | 99.752
|
| Yield: | 2.962%
|
| Spread: | Treasuries plus 188.4 bps
|
| Call: | Non-callable
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