Citigroup launches tender offers for 7.25% notes and 5.125% notes

By Angela McDaniels

Tacoma, Wash., June 24 - Citigroup Inc. has begun tender offers for its $410,805,100 principal amount of 7.25% subordinated notes due Oct. 1, 2010 and $1,706,514,000 principal amount of 5.125% notes due Feb. 14, 2011, according to a company news release.

The purchase price is 101.75 for the 7.25% notes and 102.625 for the 5.125% notes. Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be July 6.

Each offer will expire at 5 p.m. ET on June 30.

The offers are subject to some conditions, but they are not contingent on the tender of any minimum principal amount of notes.

Citigroup said the offers are part of a liability management strategy that uses available cash to retire older vintage debt nearing maturity. The company repurchased $3.02 billion of senior notes in February and $535.9 million of subordinated notes in May.

Citigroup Global Markets Inc. (800 558-3745) is the dealer manager for the offers, and Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the depositary and information agent.

Citigroup is a financial services company based in New York.

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