Citigroup prices tender offers, increases caps for three note series

By Angela McDaniels

Tacoma, Wash., June 3 - Citigroup Inc. determined the purchase prices it will pay in its tender offers and increased the maximum tender amounts for three series of notes, according to news releases from the company.

The notes eligible for the offer and the amounts tendered as of 5 p.m. ET on June 2 are noted in the first table below. Prior to the changes, the cap was $375 million for the 2.25% notes, $20 million for the 5.875% notes due 2037 and $20 million for the 6.875% notes.

If the principal amount of U.S. dollar notes of any series tendered exceeds the maximum tender cap for that series, then Citigroup will accept tendered U.S. dollar notes of that series on a pro rata basis.

The company also extended the early tender date for the 4.75% notes, the 4.7% notes and the 2.25% notes to 11:59 p.m. ET on June 16, which is the current expiration date for the tender offers. The early tender date for the remaining series of notes is 5 p.m. ET on June 2.

The purchase prices are noted in the second table below. Pricing was set to equate to a yield to maturity equal to a fixed spread over the applicable yield of the bid-side price of a reference Treasury bond or Government of Canada bond, as applicable, at 2 p.m. ET on June 3.

In each case, the total consideration includes an early tender premium of $30 or C$30 for each $1,000 or C$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 June 19.

For each series of U.S. dollar-denominated notes, the offer is conditioned on the receipt of tenders for a principal amount of that series that is greater than or equal to the maximum tender cap for that series.

The dealer manager is Citigroup Financial Services Inc. (212 723-6106 or 800 558-3745). The information agent for U.S. dollar notes is Global Bondholder Services Corp. (212 430-3774 or 866 807-2200). The information agent for the Canadian dollar notes is Kingsdale Shareholder Services (416 867-2272, 888 518-1557 or contactus@kingsdaleshareholder.com).

Citigroup is a financial services company based in New York City.

Citigroup tender offers

Notes	Amount outstanding	Cap	Amount tendered so far
4.75% notes due 2015	$1,530,804,000	$770 million	$263,208,000
4.7% notes due 2015	$714 million	$360 million	$104,779,000
2.25% notes due 2015	$1.25 billion	$500 million	$484,267,000
5.875% subordinated notes due 2033	$1 billion	$150 million	$195,416,000
5.85% notes due 2034	$303,949,000	$30 million	$7,395,000
5.875% notes due 2037	$202,761,000	$30 million	$28,815,000
6.875% notes due 2038	$742,517,000	$75 million	$114,455,000
4.65% subordinated notes due 2022	C$500 million	NA	C$18.42 million
5.16% subordinated notes due 2027	C$500 million	NA	C$418.37 million
Pricing
Notes	Reference security	Spread	Total consideration
4.75% notes due 2015	0.25% bond due May 15, 2015	45 bps	$1,038.34
4.7% notes due 2015	0.25% bond due May 15, 2015	45 bps	$1,039.03
2.25% notes due 2015	0.375% bond due April 30, 2016	25 bps	$1,018.43
5.875% subordinated notes due 2033	3.625% bond due Feb. 15, 2044	155 bps	$1,110.38
5.85% notes due 2034	3.625% bond due Feb. 15, 2044	120 bps	$1,163.04
5.875% notes due 2037	3.625% bond due Feb. 15, 2044	125 bps	$1,169.93
6.875% notes due 2038	3.625% bond due Feb. 15, 2044	125 bps	$1,315.60
4.65% subordinated notes due 2022	1.5% bond due Sept. 1, 2017	165 bps	C$1,054.03
5.16% subordinated notes due 2027	2.75% bond due June 1, 2022	195 bps	C$1,075.38

© 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.