Citi ups tender caps for two series, tallies early results; pricing set

By Susanna Moon

Chicago, March 3 - Citigroup Inc. announced pricing and the early tender results in the offers for its $326,241,000 of outstanding 5.85% notes due 2034, $302,935,000 of outstanding 5.875% notes due 2037 and $918,041,000 of outstanding 6.875% notes due 2038.

Citigroup also increased the maximum tender amount in the offers for its 5.875% notes and its 6.875% notes, according to a company news release.

The company now will purchase up to $65 million of the 5.85% notes, up to $105 million of the 5.875% notes and up to $175 million of the 6.875% notes. Originally, the company had offered to up to $65 million of the 5.875% notes and up to $100 million of the 6.875% notes.

Holders had tendered $22,177,000 of the 5.85% notes, $100,111,000 of 5.875% notes and $174,329,000 of 6.875% notes by 5 p.m. ET on Feb. 28, the early tender date.

The offers will continue until 11:59 p.m. ET on March 14. Tendered notes may no longer be withdrawn, as of the early tender date. The offer began on Feb. 14.

All other terms of the offers remain unchanged.

Pricing set

The total purchase price for each $1,000 principal amount will be $1,157.58 for the 5.85% notes, $1,156.11 for the 5.875% notes and $1,301.05 for the 6.875% notes, according to a separate press release Monday. The reference yield was 3.556% for all three series of notes.

Pricing for each series of notes was set at 2 p.m. ET on March 3 using a yield to maturity of the bid-side price of the 3.75% Treasury due Nov. 15, 2043 plus a fixed spread of 110 basis points for the 5.85% notes and 120 bps for the other two series.

The total payment includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be March 19.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The depositary and information agent is Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

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.