Citigroup prices cash tender offers for 4.45%, 8.5% senior notes

By Marisa Wong

Morgantown, W.Va., Nov. 3 – Citigroup Inc. priced its tender offer for its $2,378,500,000 of 4.45% senior notes due 2017 and its $2,824,497,000 of 8.5% senior notes due 2019.

Pricing was set using the yield to maturity of the fixed spread over the reference yield, which is based on the bid-side price of a U.S. Treasury security at 2 p.m. ET on Tuesday.

The 4.45% notes were priced using the 0.625% U.S. Treasury notes due Sept. 30, 2017 plus 20 basis points. The reference yield was 0.77%, making the total consideration $1,040.64.

The 8.5% notes were priced using the 1.375% U.S. Treasury notes due Sept. 30, 2020 plus 50 bps. The reference yield was 1.599%, making the total consideration $1,217.53.

The tender offers will end at 5 p.m. ET on Nov. 3, with settlement following on Nov. 6. Tendered notes may be withdrawn at any time before the offer ends.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager. Global Bondholder Services Corp. (866 470-4300, 212 430-3774 or gbsc-usa.com/Citigroup) is the depositary and information agent.

The offers are part of Citigroup’s liability management strategy and its efforts to enhance the efficiency of its funding and capital structure, according to a prior press release.

Since 2013, Citigroup said it has redeemed or retired $29.3 billion of securities, excluding exchanged securities, of which $7.2 billion was redeemed or retired in 2015.

The company said it will continue to consider opportunities to redeem or repurchase securities.

Citigroup is a financial services company based in New York.

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