By Andrea Heisinger
New York, June 10 - Citigroup Inc. remarketed its issue of 6.455% junior subordinated deferrable debentures as $1.875 billion in 6% notes due Dec. 13, 2013 late on Wednesday to yield Treasuries plus 425 basis points, a source away from the sale said.
The notes (A3/A/A+) were originally issued as debentures due on Sept. 15, 2041 to Citigroup Capital XXX. In early May they were given senior ranking, giving them a shorter maturity. Then on May 24, Citigroup Capital XXX was dissolved and the notes distributed to holders of the capital securities.
The remarketed notes were priced at 101.7895 to yield 5.431%. They are non-callable.
Citigroup Global Markets Inc. was the remarketing agent.
Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc. and UBS Securities Inc. were the senior co-managers.
Junior co-managers were Aladdin Capital LLC, Barclays Capital Inc., Cabrera Capital Markets LLC, CastleOak Securities LP, KeyBanc Capital Markets, Lloyds TSB Bank plc, MFR Securities Inc., M.R. Beal & Co., RBC Capital Markets Corp., TD Securities USA LLC and UniCredit Capital Markets Inc.
Proceeds will not go to Citigroup Inc. but are instead being used to pay the remarketing agent, to purchase an interest-bearing deposit with Citibank, and if any money is remaining, will be remitted to holders of Upper DECS Equity Units participating in the remarketing.
The financial services company is based in New York City.
| Issuer: | Citigroup Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1.875 billion, remarketed
|
| Maturity: | Dec. 13, 2013
|
| Remarketing agent: | Citigroup Global Markets Inc.
|
| Senior co-managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc., UBS Securities Inc.
|
| Junior co-managers: | Aladdin Capital LLC, Barclays Capital Inc., Cabrera Capital Markets LLC, CastleOak Securities LP, KeyBanc Capital Markets, Lloyds TSB Bank plc, MFR Securities Inc., M.R. Beal & Co., RBC Capital Markets Corp., TD Securities USA LLC, UniCredit Capital Markets Inc.
|
| Coupon: | 6%
|
| Price: | 101.7895
|
| Yield: | 5.431%
|
| Spread: | Treasuries plus 425 bps
|
| Call: | Non-callable
|
| Trade date: | June 9
|
| Settlement date: | June 15
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
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