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Citi holders tender $1.66 billion 4.45% notes, $1.6 billion 8.5% notes
By Susanna Moon
Chicago, Nov. 4 – Citigroup Inc. said investors had tendered $1,664,596,000 of its 4.45% senior notes due 2017 and $1,609,466,000 of its 8.5% senior notes due 2019 in the offers that ended at 5 p.m. ET on Nov. 3.
Of the tendered amounts, $4,271,000 of the 4.45% notes and $684,000 of the 8.5% notes remain subject to guaranteed delivery procedures, according to a company press release.
Settlement has been slated for Nov. 6.
As previously announced, the total purchase price for each $1,000 principal amount was set at $1,040.64 for the 4.45% notes and at $1,217.53 for the 8.5% notes.
Pricing was set using the yield to maturity of the fixed spread over the reference yield, which was based on the bid-side price of a U.S. Treasury security at 2 p.m. ET on Nov. 3.
The 4.45% notes were priced using the 0.625% U.S. Treasury notes due Sept. 30, 2017 plus 20 basis points for a reference yield of 0.77%.
The 8.5% notes were priced using the 1.375% U.S. Treasury notes due Sept. 30, 2020 plus 50 bps for a reference yield of 1.599%.
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.
Citigroup began the tender offer for its $2,378,500,000 of 4.45% notes and its $2,824,497,000 of 8.5% notes on Nov. 3.
As previously noted, 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 previous 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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