Citi gets tenders for $442,000 more 6.95% notes, $1.23 million 5.375% notes in offer

By Susanna Moon

Chicago, Nov. 30 – Citigroup Inc. said it accepted tenders for $1,154,501,000 of its 5.375% notes due 2020 and subsidiary Associates First Capital Corp.’s 6.95% notes due 2018.

The tender offers ended at 11:59 p.m. ET on Nov. 25, with settlement on Dec. 1 for notes tendered after the early deadline.

As previously reported, Citigroup was offering to purchase for cash any and all of the $950 million of outstanding 6.95% notes and up to $1 billion of its $1.66 billion outstanding 5.375% notes due 2020.

Holders tendered another $442,000 of the 6.95% notes and $1,234,000 of the 5.375% notes since 5 p.m. ET on Nov. 10, the early tender date.

As announced before, holders had tendered $485,859,000 of the 6.95% notes and $666,966,000 of the 5.375% notes by the early tender deadline, with settlement on Nov. 16.

The total purchase price for each $1,000 principal amount was $1,142.61 for the 6.95% notes and $1,121.31 for the 5.375% notes.

Pricing was set at 2 p.m. ET on Nov. 12 using the yield of the bid-side price of the reference security plus a fixed spread as follows:

• For the 6.95% notes, the 0.875% Treasury due Oct. 15, 2018 plus 75 basis points for a yield of 1.214%; and

• For the 5.375% notes, the 1.375% Treasury due Sept. 30, 2020 plus 90 bps for a yield of 1.73%.

The total amount included an early tender premium for notes tendered by the early tender date.

Holders who tendered their notes after the early tender date will receive the total amount less the early tender premium.

Citigroup was soliciting consents to amend the 6.95% notes to eliminate substantially all of the restrictive covenants.

As of the early tender date, the issuers had not received the required consents to amend the 6.95% notes.

Holders may not tender their 6.95% notes without delivering consents or vice versa.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the depositary and information agent.

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