Published on 6/17/2014 in the Prospect News Investment Grade Daily and Prospect News Liability Management Daily.
Citigroup completes cash tender offers for nine series of notes
By Jennifer Chiou
New York, June 17 – Citigroup Inc. announced the final results in its cash tender offers for nine series of outstanding notes. It is accepting roughly $1.5 billion total notes in the offer that ended at 11:59 p.m. ET on June 16.
The notes eligible for the offer and the amounts tendered and accepted are in the first table below.
As reported earlier in the month, if the principal amount of U.S. dollar notes of any series tendered exceeded 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 previously 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 was the expiration date for the tender offers. The early tender date for the remaining series of notes was 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 $30.00 or C$30.00 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 was 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 was Citigroup Financial Services Inc. (212 723-6106 or 800 558-3745). The information agent for U.S. dollar notes was Global Bondholder Services Corp. (212 430-3774 or 866 807-2200). The information agent for the Canadian dollar notes was 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 | Amount tendered | Amount accepted
|
| 4.75% notes due 2015 | $1,530,804,000 | $265.06 million | $265.06 million
|
| 4.7% notes due 2015 | $714 million | $105,739,000 | $105,739,000
|
| 2.25% notes due 2015 | $1.25 billion | $487,667,000 | $487,667,000
|
| 5.875% subordinated notes due 2033 | $1 billion | $197,447,000 | $150 million
|
| 5.85% notes due 2034 | $303,949,000 | $7,395,000 | $7,395,000
|
| 5.875% notes due 2037 | $202,761,000 | $28,839,000 | $28,839,000
|
| 6.875% notes due 2038 | $742,517,000 | $114,475,000 | $75 million
|
| 4.65% subordinated notes due 2022 | C$500 million | C$18,478,000 | C$18,478,000
|
| 5.16% subordinated notes due 2027 | C$500 million | C$419,308,000 | C$419,308,000
|
|
|
| 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
|
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