Citigroup accepts tenders for $535.9 million of seven notes series

By Jennifer Chiou

New York, May 7 - Citigroup Inc. announced the receipt of tenders from holders of a total of $535.9 million of notes in the completed $1.1 billion tender offer for several series of its notes.

The offer ended at 5 p.m. ET on May 6. It began on April 23.

All in all, the company received tenders for:

• $4.11 million of its $10 million of 6.6% subordinated fixed-rate notes due Sept. 15, 2010 with an offer price of 102.25%;

• $378,545,200 of its $789,350,300 of 7.25% subordinated notes due 2010 with an offer price of 102.8%;

• $4,736,000 of its $25 million of 6.5% subordinated fixed-rate notes due Dec. 1, 2010 with an offer price of 103.25%;

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

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

• None of its $5 million of 6.5% subordinated notes due Feb. 15, 2011 with an offer price of 104%; and

• €89,833,984 of its €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 financial services company said that settlement is slated for May 11.

The offer was 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 did not result in any reduction in Citi's tier 2 capital, a prior 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. was the dealer manager (800 558-3745 or 44 20 7986-8969). Global Bondholder Services Corp. was the depositary and information agent (866 540-1500 or call collect 212 430-3774).

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

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