Citi prices fixed spread tender offers to buy back nine note series

By Susanna Moon

Chicago, Dec. 11 - Citigroup Inc. announced the reference yields for nine series of notes covered by the cash tender offer to repurchase $910 million from 12 series of its outstanding notes with a total of $18,436,573,000 outstanding.

Pricing for the fixed spread offers was set at 2 p.m. ET on Dec. 10.

As noted before, nine series of notes are covered by fixed spread offers. In these, Citigroup is offering to buy

• $125 million of its $2,612,299,000 of 6.5% senior notes due 2013. Pricing will be based on a spread of 35 basis points over the 0.25% Treasury due Oct. 31, 2014, including a $30 per $1,000 early tender premium;

• $100 million of its $1,805,000,000 of 6% senior notes due 2013. Pricing will be based on a spread of 45 bps over the 0.25% Treasury due Oct. 31, 2014, including a $30 per $1,000 early tender premium;

• $150 million of its $1,565,000,000 of 5.125% senior notes due 2014. Pricing will be based on a spread of 65 bps over the 0.25% Treasury due Oct. 31, 2014, including a $30 per $1,000 early tender premium;

• $25 million of its $1,952,000,000 of 5.5% senior notes due 2014. Pricing will be based on a spread of 105 bps over the 0.25% Treasury due Oct. 31, 2014, including a $30 per $1,000 early tender premium;

• $25 million of its $1,718,491,000 of 6.01% senior notes due 2015. Pricing will be based on a spread of 100 bps over the 0.375% Treasury due Nov. 15, 2015, including a $30 per $1,000 early tender premium;

• $25 million of its $2,365,809,000 of 4.75% senior notes due 2015. Pricing will be based on a spread of 105 bps over the 0.375% Treasury due Nov. 15, 2015, including a $30 per $1,000 early tender premium;

• $10 million of its $724 million of 4.7% senior notes due 2015. Pricing will be based on a spread of 105 bps over the 0.375% Treasury due Nov. 15, 2015, including a $30 per $1,000 early tender premium;

• $25 million of its $1.83 billion of 4.587% senior notes due 2015. Pricing will be based on a spread of 115 bps over the 0.375% Treasury due Nov. 15, 2015, including a $30 per $1,000 early tender premium; and

• $25 million of its $961,376,000 of 5.3% senior notes due 2016. Pricing will be based on a spread of 90 bps over the 0.75% Treasury due Oct. 15, 2017, including a $30 per $1,000 early tender premium.

The reference yield was 0.240% for the 6.5% notes, 6% notes, 5.125% and 5.5% notes; the reference yield was 0.316% for the 6.01% notes, 4.75% notes, 4.7% notes and 4.587% notes; and it was 0.609% for the 5.3% notes, according to a company press release.

Offer for floaters

As previously noted, three series of notes were included in the fixed-price offers. Citigroup is offering to buy

• $150 million of its $1,392,685,000 of floating-rate senior notes due 2013 at a price of $1,011.25 per $1,000 principal amount, including a $30 per $1,000 early tender premium;

• $150 million of its $979,913,000 of floating-rate senior notes due January 2014 at a price of $1,012.50 per $1,000 principal amount, including a $30 per $1,000 early tender premium; and

• $100 million of its $530 million of floating-rate senior notes due April 2014 at a price of $1,007.50 per $1,000 principal amount, including a $30 per $1,000 early tender premium.

Holders could tender their notes until 5 p.m. ET on Dec. 7 to receive the total payment including the early tender premium. The early tender deadline was originally set for 5 p.m. ET on Dec. 5.

Pricing for the offers was pushed back from 2 p.m. ET on Dec. 6.

The offer will end at 11:59 p.m. on Dec. 21, extended from 11:59 p.m. ET on Dec. 19. The offer began on Nov. 21.

For all notes, Citigroup will also pay accrued interest up to but excluding the settlement date of Dec. 27, as noted before.

Citigroup has reduced its debt by $13.9 billion so far this year through various liability management actions, including redemptions of trust preferred securities, as noted before.

The company said in a previous news release that the offers reflect its "robust liquidity position and are consistent with its recent liability management initiatives."

Each individual offer is subject to the condition that holders tender the amount that Citigroup is offering to buy.

Citigroup may increase the cap for one or more series of notes or waive the condition that holders tender the minimum tender condition.

Citigroup Global Markets Inc. is dealer manager (800 558-3745 or 212 723-6106). Global Bondholder Services Corp. is depositary and information agent (866 873-7700 or call collect 212 430-3774).

Citigroup is a New York-based financial institution.

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