Citigroup accepts $406.24 million of notes in tender for three series

By Jennifer Chiou

New York, March 10 – Citigroup Inc. announced that it has accepted a total of $406,243,000 principal amount of notes in its tender offer for three series of its notes.

Specifically, the company accepted the following:

• $30,222,000 of its $850 million of outstanding 5.875% subordinated notes due 2033, which have a tender cap of $95 million;

• $302.68 million of its $2 billion of outstanding 6.125% subordinated notes due 2036, which have a tender cap of $302.68 million, previously raised from $220 million; and

• $73,341,000 of the $73,346,000 of tenders for its $667,517,000 of outstanding 6.875% senior notes due 2038, which have a tender cap of $73,341,000. This cap is up from the originally announced $65 million.

The offer ended at 11:59 p.m. ET on March 9, and settlement is set for March 12.

Citigroup set the new caps on two note series along with the announcement of the early tender results. The early tender deadline was 5 p.m. ET on Feb 23.

When the offer was launched on Feb. 9, the company was offering to purchase for cash up to $380 million of the three note series.

The total purchase price for each $1,000 principal amount is $1,169.00 for the 5.875% notes, $1,207.58 for the 6.125% notes and $1,402.52 for the 6.875% notes, each including an early tender premium of $30.00.

As previously reported, pricing was set at 2 p.m. ET on Feb. 24 using the bid-side price of the 3% Treasury due Nov. 15, 2044 plus a fixed spread of 190 basis points for the 5.875% notes, 200 bps for the 6.125% notes and 155 bps for the 6.875% notes.

Those who tendered after the early tender date will receive the total payment less the early tender premium.

Since 2013, Citigroup has redeemed or retired $22.7 billion of securities, excluding exchanged securities, of which $500 million was redeemed or retired in 2015, according to a company release.

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.

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