Citigroup gives price, results of tender offer for 7.375%, 4% notes

By Toni Weeks

San Diego, Dec. 10 - Citigroup Inc. announced the results of its tender offer for a portion of its €1.5 billion of 7.375% senior notes due June 16, 2014 and €1,199,592,000 of 4% senior notes due Nov. 26, 2015. The offer began on Nov. 21 and expired at 11 a.m. ET on Dec. 7, pushed out from the original deadline of Dec. 5.

According to a press release, the company received tenders for €597.51 million of the 7.375% notes and €198,141,000 of the 4% notes by the expiration date, the same amounts that were tendered by the original Dec. 5 deadline.

The company said in the press release that it has accepted for purchase all of the 7.375% notes tendered. It previously announced it would accept up to €400 million of these notes, then increased the cap to €650 million on Dec. 6.

Citigroup also said it has accepted the 4% notes with a scaling factor of 39.09% in order to limit the repurchase to the €75 million tender cap for these notes.

The purchase price was determined at 9 a.m. ET on Monday by reference to the sum of an interpolated benchmark rate and a fixed spread.

For the 7.375% notes, the purchase price was 110.013, determined from the interpolated reference rate of 0.431% plus 25 basis points to yield 0.681%, plus accrued interest of 3.617%.

For the 4% notes, the purchase price was 108.505, determined from the interpolated mid-swap rate of 0.412% plus 65 bps to yield 1.062%, plus accrued interest of 0.175%.

Following settlement on Dec. 12, €902.49 million of the 7.375% notes and €1,124,592,000 of the 4% notes will remain outstanding.

According to the release, excluding the tender offer, Citigroup has decreased its outstanding long-term debt this year by about $13.9 billion through liability management initiatives.

The offer was made to holders outside of the United States.

Citigroup Global Markets Ltd. was the dealer manager (44 20 7986 8969 or liabilitymanagement.europe@citi.com), and Lucid Issuer Services Ltd. was the tender agent (attn: Paul Kamminga at 44 20 7704 0880 or citi@lucid-is.com).

Citigroup is a New York-based financial institution.

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