Citi accepts roughly $1.15 billion notes in tender offer for six series

By Jennifer Chiou

New York, Jan. 6 – Citigroup Inc. announced the close of its offers to purchase six series of notes. It will accept a total of about $1.15 billion of notes in the tender offers, the last of which ended on Jan. 5.

According to a news release, all in all the company accepted the following:

• $69,142,000 of the $667,297,000 of outstanding 2.25% senior notes due 2015, with a series cap of $69,142,000, which was previously upsized from $35 million;

• $303,336,000 of the $1.23 billion of outstanding 4.587% senior notes due 2015, with a series cap of $303,336,000, up from $250 million;

• $66,067,000 of the $765,489,000 of outstanding 5.3% senior notes due 2016, with a series cap of $100 million;

• $424,794,000 of the $1,274,936,000 of outstanding 1.25% senior notes due 2016, with a series cap of $424,794,000, up from $200 million;

• $67,674,000 of the $1,086,267,000 of outstanding 5.5% subordinated notes due 2017, with a series cap of $100 million; and

• $223.73 million of the $3,597,989,000 of outstanding 6.125% senior notes due 2017, with a series cap of $360 million.

At the early tender deadline of 5 p.m. ET on Dec. 9, the tender amounts for the first four series were unchanged, and holders had tendered $66,129,000 of the 5.5% notes and $223,605,000 of the 6.125% notes.

The company had accepted for purchase all of the early tendered notes with settlement on Dec. 12.

Before some tender caps were revised, the company planned to purchase $1.05 billion of the six series of notes.

The tender offers began on Nov. 25.

Pricing was set at 2 p.m. ET on Dec. 10 using the yield of the bid-side price of a reference security plus a fixed spread. The reference securities and fixed spreads are noted in the table below.

The total purchase price for each $1,000 principal amount was $1,010.39 for the 2.25% notes, $1,039.46 for the 4.587% notes, $1,048.55 for the 5.3% notes, $1,005.60 for the 1.25% notes, $1,083.15 for the 5.5% notes and $1,122.02 for the 6.125% notes.

Holders who tendered their notes by the early tender date received the total purchase price, which includes an early tender premium of $30.00 per $1,000 principal amount of notes.

The company also paid accrued interest.

Since 2013, Citigroup said it has redeemed or retired $20.3 billion of securities, excluding exchanged securities.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) was the dealer manager for the offers. Global Bondholder Services Corp. (866 470-4300 or 212 430-3774) was the depositary and information agent.

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

© 2015 Prospect News.
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