By Andrea Heisinger
New York, June 8 - Citigroup Inc. priced $1.875 billion of 3.953% five-year notes in a remarketing of junior subordinated debentures on Wednesday, an informed source said.
The notes (A3/A/A+) were priced at 102.0384 to yield 3.505% with a spread of Treasuries plus 200 basis points.
The paper priced at the tight end of both whispered guidance in the low 200 bps area and revised talk in the 205 bps area.
The securities are non-callable.
The original issue was 6.935% junior subordinated deferrable interest debentures due on Sept. 15, 2042 to Citigroup Capital XXXII.
Citi said the offering was the last of four series of debt securities required to be remarketed under the terms of Citi's Upper DECS Equity Units issued to the Abu Dhabi Investment Authority in December 2007.
Citigroup Global Markets Inc. is the remarketing agent.
Proceeds will be used to pay the remarketing agent, purchase an interest-bearing deposit from Citibank NA equal to $1.875 billion and the amount of accrued interest due on the junior subordinated debentures if they remain outstanding on Sept. 15. Ultimately proceeds from this fourth remarketing will be used to satisfy the Abu Dhabi Investment Authority's last stock purchase obligation on Sept. 15, 2011
The financial services company is based in New York City.
| Issuer: | Citigroup Inc.
|
| Issue: | Remarketed senior notes
|
| Amount: | $1.875 billion
|
| Maturity: | June 15, 2016
|
| Remarketing agent: | Citigroup Global Markets Inc.
|
| Coupon: | 3.953%
|
| Price: | 102.0384
|
| Yield: | 3.505%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Non-callable
|
| Trade date: | June 8
|
| Settlement date: | June 15
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Price talk: | Low 200 bps area (whispered), 205 bps area (revised)
|
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