Citigroup $750 million mandatory, into News Corp., talked at Libor minus 50 bps to Libor flat, up 153.5%

By Ronda Fears

Nashville, Jan. 20 - Citigroup Global Markets Holdings Inc. launched a $750 million offering of five-year floating-rate convertibles, which are mandatorily exchangeable into News Corp. stock. The notes are talked to yield the three-month Libor minus 50 basis points to the three-month Libor flat with an initial conversion premium of 153.5%.

The issue will be sold at par, with a floor price of 85% of par; thus, investors are protected on the downside beyond 15%.

Citigroup Global Markets Inc. is bookrunner of the deal.

Pricing is scheduled for after the market close Wednesday.

The five-year notes will be non-callable.

Holders will have dividend protection by way of a pass-through of common dividends or a conversion ratio adjustment.

There is a $112.5 million greenshoe available.

The issue can be settled in cash, stock or a combination of the two.

News Corp. shares closed Tuesday up 53 cents, or 1.43%, to $37.59.

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