Citigroup launches $1.1 billion tender offer for seven notes series

By Jennifer Chiou

New York, April 23 - Citigroup Inc. announced the start of an about $1.1 billion tender offer for several series of its notes.

The offer will end at 5 p.m. ET on May 6.

Affected securities include the following:

• $10 million of 6.6% subordinated fixed-rate notes due Sept. 15, 2010 with an offer price of 102.25%;

• $789,350,300 of 7.25% subordinated notes due 2010 with an offer price of 102.8%;

• $25 million of 6.5% subordinated fixed-rate notes due Dec. 1, 2010 with an offer price of 103.25%;

• $25 million of 6.65% subordinated notes due Dec. 15, 2010 with an offer price of 103.625%;

• $10 million of 6.49% subordinated notes due Jan. 11, 2011 with an offer price of 103.75%;

• $5 million of 6.5% subordinated notes due Feb. 15, 2011 with an offer price of 104%; and

• €178,952,158 (350 million Deutsche marks) of 5.5% subordinated notes due June 30, 2010 with an offer price of 100.75%.

The New York-based global financial services company said that settlement is slated for May 11.

According to a company news release, the offer is part of a liability management strategy that uses available cash to retire older vintage debt nearing maturity and is expected to have no impact on Citi's structural liquidity.

In addition, because the notes are within one year of maturity, the offers will not result in any reduction in Citi's tier 2 capital, the release added, stating that Citi completed the repurchase of $3.02 billion of its senior notes in February.

For the dollar notes, Citigroup Global Markets Inc. is the dealer manager (800 558-3745 or 44 20 7986-8969). Global Bondholder Services Corp. is the depositary and information agent (866 540-1500 or call collect 212 430-3774).

For the mark notes, Lucid Issuer Services Ltd. is the tender agent and information agent (44 20 7704-0880).

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