By Andrea Heisinger
New York, Oct. 20 - Citigroup Inc. units Citigroup Funding Inc. and Citibank NA sold $5 billion of notes (Aaa/AAA/) late Tuesday in two tranches backed by the Federal Deposit Insurance Corp., a source close to the deal said.
The issue was oversubscribed, he said, and will likely be the last FDIC-backed sale from the bank.
The $2.5 billion of new 1.75% three-year notes sold by Citibank priced at 99.689 to yield 1.851% with a spread of Treasuries plus 42 basis points.
The company also reopened its 1.875% notes due Oct. 22, 2012 to add $2.5 billion. The add-on priced at 100.393 to yield 1.739% with a spread of Treasuries plus 30.8 bps. Total issuance for the 1.875% notes is $5 billion, including $2.5 billion previously issued.
Citigroup Global Markets Inc. was the bookrunner.
The financial services company is based in New York City.
| Issuer: | Citigroup Funding Inc., Citibank NA
|
| Guarantor: | Federal Deposit Insurance Corp.
|
| Issue: | FDIC-backed notes
|
| Total amount: | $5 billion
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 27
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
|
|
| Three-year notes
|
| Issuer: | Citibank NA
|
| Amount: | $2.5 billion
|
| Maturity: | Dec. 28, 2012
|
| Coupon: | 1.75%
|
| Price: | 99.689
|
| Yield: | 1.851%
|
| Spread: | Treasuries plus 42 bps
|
| Call: | Non-callable
|
|
|
| Reopened three-year notes
|
| Issuer: | Citigroup Funding Inc.
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 22, 2012
|
| Coupon: | 1.875%
|
| Price: | 100.393
|
| Yield: | 1.739%
|
| Spread: | Treasuries plus 30.8 bps
|
| Call: | Non-callable
|
| Total issuance: | $5 billion, including $2.5 billion issued previously
|
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