Citigroup collects early tenders for $1.5 billion of five note series

By Susanna Moon

Chicago, Dec. 16 – Citigroup Inc. gave an update as of 5 p.m. ET on Dec. 15, the early tender date, in the offers for $3.6 billion of notes issued in five series.

As announced Dec. 2, Citigroup was offering to repurchase

• Any and all of its $204,597,000 of outstanding 4.95% notes due 2043;

• Up to $75 million of its $516,724,000 of outstanding 5.875% subordinated notes due 2033;

• Up to $75 million of its $676,788,000 of outstanding 6.125% subordinated notes due 2036;

• Up to $75 million of its $954,999,000 of outstanding 5.3% subordinated notes due 2044; and

• Up to $250 million of its $1.25 billion of outstanding 4.65% notes due 2045.

Citigroup counted early tenders for $143,885,000 of the 4.95% notes, $35,344,000 of the 5.875% notes, $175,406,000 of the 6.125% notes, $328,743,000 of the 5.3% notes and $832,071,000 of the 4.65% notes, according to a company update.

The company accepted for purchase all of the 4.95% notes and 5.875% notes tendered as of the early deadline and up to the capped amounts for the remaining series on a prorated basis.

Because the offers have been oversubscribed for three series of notes, Citigroup said it will accept no more of those notes for purchase.

Holders may continue to tender the 4.95% notes and 5.875% notes in the offers until 11:59 p.m. ET on Dec. 30.

Tendered notes may no longer be withdrawn.

As previously announced, the total purchase price includes an early tender premium of $30 per $1,000 principal amount of notes.

Pricing was scheduled for 2 p.m. ET on Dec. 16 using the yield of the bid-side price of the 2.25% Treasury due Aug. 15, 2046 plus a fixed spread of 130 basis points for the 4.95% notes, 155 bps for the 5.875% notes, 165 bps for the 6.125% notes and the 5.3% notes and 120 bps for the 4.65% notes.

The company will also pay accrued interest up to but excluding the settlement date, which will be Dec. 20 for early tendered notes and Jan. 5 for remaining tenders.

Since 2014, Citigroup has redeemed or retired $33.4 billion of securities and plans to continue to consider opportunities to redeem or repurchase securities, according to a previous announcement.

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

Citigroup is a banking and financial services company based in New York.

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