Citigroup accepts $554.87 million of tendered 6%, 6.125% notes

By Marisa Wong

Madison, Wis., July 8 – Citigroup Inc. said it accepted for purchase $554,865,000 of notes tendered under its previously announced cash tender offers.

As of 11:59 p.m. ET on July 7, the expiration of the offers, holders had tendered $193,611,000 of the $1 billion outstanding 6% subordinated notes due 2033 and $361,389,000 of the $1,351,320,000 outstanding 6.125% subordinated notes due 2036.

Citigroup accepted for purchase $193,476,000 of the tendered 6% notes and all $361,389,000 of the tendered 6.125% notes.

Settlement is expected to occur on July 10 for all notes tendered and accepted but not previously purchased on the early settlement date.

Offer details

When the offer was announced June 9, the issuer had planned to buy up to $100 million of its $1 billion outstanding 6% notes and up to $400 million of its $1,351,320,000 outstanding 6.125% notes.

The company later raised the tender offer cap to $193,476,000 for the 6% notes, because the offer had been oversubscribed by the early deadline.

However, the company said it would not accept any more 6% notes tendered after the early deadline.

As of 5 p.m. ET on June 22, the early tender date, holders had tendered $193,476,000 of the 6% notes and $361,168,000 of the 6.125% notes.

The total purchase price for each $1,000 principal amount was set at $1,119.36 for the 6% notes and $1,139 for the 6.125% notes, according to a prior press release.

The total purchase price includes a $30.00 early tender premium for each $1,000 principal amount of notes tendered by the early deadline.

Pricing was set at 2 p.m. ET on June 23 using a yield to maturity on the bid-side price of the 2.5% Treasury due Feb. 15, 2045 plus a fixed spread of 180 basis points for the 6% notes and 185 bps for the 6.125% notes.

The reference yield was 3.198% for the 6% notes and 3.198% for the 6.125% notes.

Those who tendered after the early deadline will receive $1,109.00 for each $1,000 principal amount of 6.125% notes.

The company will also pay accrued interest.

The tender offers were conditioned on holders tendering a principal amount of each series of notes greater than or equal to the cap for that series.

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. (866 470-4300 or 212 430-3774).

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

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