Citi gives early tender results in offer, lifts sub-cap for two series

By Susanna Moon

Chicago, July 30 – Citigroup Inc. said it lifted the caps of two series of notes in the tender offers for up to $2 billion of its $7.5 billion of five series of notes.

Holders had tendered the following amounts as of 5 p.m. ET on July 29, the early tender date, according to a company press release:

• $95,026,000 of its $762,323,000 2.25% notes due 2015 with a sub-cap of $250 million;

• $602,178,000 of its $1,805,000,000 4.587% notes due 2015 with a sub-cap of $575 million;

• $167,337,000 of its $936,376,000 5.3% notes due 2016 with a sub-cap of $300 million;

• $542.9 million of its $1.75 billion 1.25% notes due 2016 with a sub-cap of $475 million; and

• $723,468,000 of its $2.21 billion 5.375% notes due 2020 with a sub-cap of $550 million.

The sub-caps were increased from $450 million for the 4.587% notes and 1.25% notes.

If the total amount of a series of notes tendered exceeds the cap for that series, then Citigroup will accept tendered notes of that series on a pro rata basis.

The offers will continue until 11:59 p.m. ET on Aug. 12 with settlement slated for Aug. 15. The offers began July 16.

Holders who tender by the early tender date will be receive the total purchase price, which will include an early tender premium of $30 per $1,000 principal amount of notes.

Pricing for each series will be set using a yield to maturity of the bid-side price of a reference Treasury security plus a fixed spread at 2 p.m. ET on July 30.

The fixed spread is 45 basis points for the 2.25% notes, 20 bps for the 4.587% notes, 25 bps for the 5.3% notes and 1.25% notes and 105 bps for the 5.375% notes.

The Treasury security is the 0.25% Treasury due Aug. 15, 2015 for the 2.25% notes, the 1.625% Treasury due June 30, 2019 for the 5.375% notes and the 0.5% Treasury due June 30, 2016 for the remaining notes.

The company will also pay accrued interest up to but not excluding the settlement date.

The offers are conditioned on obtaining tenders for at least the cap of each series of notes.

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 City.

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