Citigroup releases results of tender offer for four note series so far

By Angela McDaniels

Tacoma, Wash., June 2 - Citigroup Inc. announced the results of its tender offers for four series of notes as of 5 p.m. ET on June 1, the early tender date.

The company is offering to purchase any and all of its ¥35 billion of 1.86% notes due 2012.

It is holding a second tender for its £600 million of floating-rate notes due 2012, $1,655,200,000 of floating-rate notes due 2012 and CHF 250 million of 2.75% notes due 2012. The notes are listed in order of acceptance priority.

As of the early tender date, holders had tendered ¥16.4 billion of the 1.86% notes, £433,191,000 of the sterling floaters, $984,326,000 of the dollar floaters and CHF 115,915,000 of the 2.75% notes.

Citigroup will purchase no more than $1.25 billion principal amount of notes in the offers. If the total amount of tendered notes expressed in dollars exceeds this cap, the notes in the second offer will be subject to proration.

The purchase price is 101.75% of par for the 1.86% notes, 100.25% of par for both series of floating-rate notes and 102.625% of par for the 2.75% notes. These amounts include a premium equal to 3% of par for notes tendered by the early tender date.

Holders will receive accrued interest up to but excluding the settlement date, which is expected to be June 6 for notes tendered by the early tender date.

Payment will be made in the currency in which the notes are denominated.

The offers began May 16 and will expire at 11:59 p.m. ET on June 24.

Asset-backed offers

In addition, Citibank (South Dakota), NA is holding tender offers for up to $6.5 billion - increased from $4.84 billion - of asset-backed securities issued by Citibank Credit Card Issuance Trust.

The early tender date for these offers was extended to 11:59 p.m. ET on June 15, which is also the expiration date. As a result, all holders who tender will receive a consent payment of $30 for each $1,000 principal amount of notes accepted.

As of 5 p.m. ET on June 1, holders had tendered the following securities in the any and all offer:

• $210 million of the trust's $225 million series 2007-A4 securities;

• $373.94 million of its $700 million series 2006-A1 securities;

• $592,845,000 of its $875 million series 2005-A8 securities;

• $663,848,000 of its $1.2 billion series 2004-A7 securities; and

• $903,172,000 of its $1,375,000,000 series 2005A-3 securities.

The bank is offering 97% of par for the 2007-A4 securities and 100.125% of par for the remaining securities.

As of 5 p.m. ET on June 1, holders had tendered the following securities in the partial waterfall tender offer:

• $307.05 million of the trust's $1 billion series 2002-A10 securities. The purchase price is 100.25% of par;

• $146.15 million of its $750 million series 2002-A4 securities. The purchase price is 100.5% of par;

• None of its $500 million series 2007-A9 securities. The purchase price is 101.125% of par, and these notes are subject to a cap of $230 million;

• $130.45 million of its $1.1 billion series 2007-A10 securities. The purchase price is 100.625% of par, and these notes are subject to a cap of $510 million;

• $1,500,471,000 of its $3.25 billion series 2007-A7 securities. The purchase price is 100.375% of par, and these notes are subject to a cap of $1.5 billion; and

• $56.5 million of its $1.2 billion series 2007-A11 securities. The purchase price is 101.5% of par, and these notes are subject to a cap of $550 million.

These securities are listed in order of acceptance priority. If more than $6.5 billion of notes are tendered, the securities in the partial waterfall offer will be subject to proration. If the amount of a series of securities tendered exceeds its cap, it will be subject to proration whether or not the $6.5 billion cap is exceeded.

The bank will also pay accrued interest on these securities.

The offers are not contingent on the tender of any minimum principal amount of notes. Citigroup said they are part of a liability management strategy that uses excess cash to retire generally older vintage debt.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745). Global Bondholder Services Corp. (866 873-7700 or 212 430-3774) is the depositary and information agent for notes denominated in dollars, and Lucid Issuer Services Ltd. (44 20 7704-0880) is the tender agent and information agent for notes that are both denominated in currencies other than dollars and that are held at Euroclear or Clearstream.

Citigroup is a financial services company based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.