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Citi to pay 97.42 to settle tenders for £181.49 million of 4.5% notes
By Susanna Moon
Chicago, Feb. 12 - Citigroup Inc. said it will accept tenders for £181,486,000 of its £497,526,000 of outstanding 4.5% subordinated notes due 2031 in an offer that ended on Feb. 11.
The purchase price was set at 97.42% of par, with a purchase yield of 4.669% and a benchmark security rate of 3.319%, according to a company press release.
Pricing was set at 9 a.m. ET on Feb. 11 using the 4.25% U.K. Treasury Gilt due June 2032 plus the purchase spread. The clearing spread over the benchmark security was set through a modified Dutch auction at the maximum purchase spread of 135 basis points for the sterling notes, the release noted.
The company will also pay accrued interest of 4.34%.
After settlement on Feb. 18, there will be £316.04 million of the notes outstanding.
On Tuesday, the company announced the results in the tender offer for its 4.5% subordinated notes and €890,246,000 of outstanding 4.25% fixed-rate/floating-rate callable subordinated notes due 2030.
As previously noted, Citigroup said it would accept all of the tendered 4.5% sterling notes, which is the equivalent of about $297 million, and none of the 4.25% notes.
When the offers began on Feb. 3, the company said it planned to purchase up to $285 million equivalent of notes in the offer but noted that it could adjust the amount.
The company said it redeemed $12 billion of securities in 2013 and will continue to consider opportunities to redeem or repurchase securities.
The dealer manager is Citigroup Global Markets Ltd. (44 20 7986 8969 or liabilitymanagement.europe@citi.com). Citibank, NA, London Branch is the tender agent.
Citigroup is a financial services company based in New York City.
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