Citi prices, wraps tender offers for sterling notes, two euro notes

By Susanna Moon

Chicago, Sept. 14 – Citigroup Inc. announced the results of the tender offers and pricing for three series of its notes, which ended at 11 a.m. ET on Sept. 11.

The company accepted for purchase the following amount of notes, according to a company press release:

• £76,315,000 of the £308.89 million outstanding 4.5% fixed-rate subordinated notes due 2031;

• €40,032,000 of the €639,941,000 outstanding 4.25% fixed-rate/floating-rate callable subordinated notes due 2030; and

• €86,018,000 of the €1,459,924,000 4.375% fixed-rate notes due 2017.

As previously announced, the company offered to purchase up to £125 million principal amount of the £500 million 4.5% notes, up to €125 million principal amount of the €1.25 billion of the 4.25% notes and up to €150 million principal amount of the €1.5 billion of the 4.375% notes.

Pricing was set at 8 a.m. ET on Sept. 14 as follows:

• 103.981 for the 4.5% notes, using the 4.75% U.K. Treasury gilt due December 2030 plus 195 basis points for a benchmark rate of 2.152% and purchase yield of 4.102%;

• 116.194 for the 4.25% notes, using the 2030 interpolated mid-swap rate plus 140 bps for a benchmark rate of 0.919% and purchase yield of 2.319%; and

• 105.627 for the 4.375% notes, using the 2017 interpolated mid-swap rate plus 20 bps for a benchmark rate of 0.054% and purchase yield of 0.254%.

After settlement on Sept. 17, there will be outstanding £232,575,000 of the 4.5% notes, €599,909,000 of the 4.25% notes and €1,373,906,000 of the 4.375% notes.

The company will also pay an accrued interest.

The offers began on Sept. 2.

Since 2013, Citigroup has redeemed or retired $28.7 billion of securities, excluding exchanged securities, of which $6.6 billion was redeemed or retired in 2015. The company said it will continue to consider opportunities to redeem or repurchase securities.

The dealer manager is Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com). The tender agent is Citibank, NA (t +44 20 7508 3867 or exchange.gats@citi.com).

Citigroup is a financial services company based in New York.

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