Citi prices tender offers for up to $2.15 billion of five note series

By Angela McDaniels

Tacoma, Wash., July 30 – Citigroup Inc. determined the prices it will pay in its tender offers for $7.5 billion of notes issued in five series, according to a company news release.

As previously reported, the company is offering to purchase up to

• $250 million of its $762,323,000 2.25% notes due 2015;

• $575 million of its $1,805,000,000 4.587% notes due 2015;

• $300 million of its $936,376,000 5.3% notes due 2016;

• $475 million of its 1.25% notes due 2016; and

• $550 million of its $2.21 billion 5.375% notes due 2020.

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 tender offers began on July 16 and will expire at 11:59 p.m. ET on Aug. 12. The settlement date is expected to be Aug. 15.

For each $1,000 principal amount of notes, the company will pay $1,016.07 for the 2.25% notes, $1,050.92 for the 4.587% notes, $1,062.40 for the 5.3% notes, $1,006.45 for the 1.25% notes and $1,139.47 for the 5.375% notes.

Each of the payments noted above includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date, 5 p.m. ET on July 29.

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

The total consideration for each series of notes is equal to the price that equates to a yield to maturity equal to the applicable fixed spread over the applicable yield, which is based on the bid-side price of the applicable reference Treasury security 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 reference 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 offers are subject to the condition that holders tender a total principal amount of each series of notes greater than or equal to the cap applicable to each such series of notes.

On July 30, the company increased the caps for the 4.587% notes and 1.25% notes from $450 million.

As of the early tender date, holders had tendered $95,026,000 of the 2.25% notes, $602,178,000 of the 4.587% notes, $167,337,000 of the 5.3% notes, $542.9 million of the 1.25% notes and $723,468,000 of the 5.375% 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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