Published on 7/18/2017 in the Prospect News Investment Grade Daily.
New Issue: Citigroup prices $5.75 billion of six-, 11-year notes in three parts
By Devika Patel
Knoxville, Tenn., July 18 – Citigroup, Inc. priced a $5.75 billion three-tranche offering of senior notes (Baa1/BBB+/A), according to an FWP filed with the Securities and Exchange Commission.
The company sold a $2.5 billion tranche of 2.876% six-year fixed-to-floating rate notes at a spread of 103 bps over Treasuries. These notes priced at par and accrue interest at 2.876% initially and at Libor plus 95 bps on and after July 24, 2022.
Citigroup placed a $2.5 billion tranche of 3.668% 11-year fixed-to-floating rate notes at a spread of 137 bps over Treasuries. These notes priced at par and accrue interest at 3.668% initially and at Libor plus 139 bps on and after July 24, 2027.
The company sold $750 million of six-year floating-rate notes at par to yield Libor plus 95 bps.
Citigroup Global Markets Inc. was the bookrunner.
Citigroup is a financial services company based in New York.
| Issuer: | Citigroup, Inc.
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| Amount: | $5.75 billion
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| Description: | Fixed-to-floating rate senior notes
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| Bookrunner: | Citigroup Global Markets Inc.
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| Trade date: | July 17
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| Settlement date: | July 24
|
| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A
|
|
|
| Six-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | July 24, 2023
|
| Coupon: | 2.876% initially; on July 24, 2022 converts to Libor plus 95 bps
|
| Price: | Par
|
| Yield: | 2.876% initially; on July 24, 2022 converts to Libor plus 95 bps
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps after Jan. 24, 2018 and before July 24, 2022, then a par call
|
| Senior co-managers: | ABN Amro Inc., Barclays, BNY Mellon Capital Markets LLC, Nomura Securities International, Inc., PNC Capital Markets LLC, Rabo Securities USA, Inc., RBC Capital Markets Corp. and TD Securities (USA) LLC
|
| Junior co-managers: | Academy Securities, Inc., Bank of China Ltd., London Branch, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CIBC World Markets Corp., Commerzbank Capital Markets Corp., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., Guzman & Co., ICBC Standard Bank plc, Imperial Capital, LLC, Melvin Securities, LLC, Mizuho Securities USA Inc., National Bank of Canada Financial Inc., Penserra Securities LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and Tigress Financial Partners LLC
|
|
|
| 11-year notes
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| Amount: | $2.5 billion
|
| Maturity: | July 24, 2028
|
| Coupon: | 3.668% initially; on July 24, 2027 converts to Libor plus 139 bps
|
| Price: | Par
|
| Yield: | 3.668% initially; on July 24, 2027 converts to Libor plus 139 bps
|
| Spread: | Treasuries plus 137 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps after Jan. 24, 2018 and before July 24, 2027, then a par call
|
| Senior co-managers: | BB&T Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Natixis Securities Americas LLC, Santander Investment Securities Inc., Swedbank AB (publ), Wells Fargo Securities LLC and U.S. Bancorp Investments Inc.
|
| Junior co-managers: | ANZ Securities, Inc., Capital Institutional Services, Inc., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, Desjardins Securities Inc., Drexel Hamilton, LLC, Huntington Investment Co., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Lloyds Securities Inc., MFR Securities, Inc., MUFG, nabSecurities, LLC, R. Seelaus & Co., Inc., Scotia Capital (USA) Inc., Skandinaviska Enskilda Banken AB (publ), Standard Chartered Bank, UBS Securities LLC, UniCredit Capital Markets LLC, Williams Capital Group LP
|
|
|
| Six-year floaters
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| Amount: | $750 million
|
| Maturity: | July 24, 2023
|
| Coupon: | Libor plus 95 bps
|
| Price: | Par
|
| Yield: | Libor plus 95 bps
|
| Call: | Redeemable in whole but not in part at par plus interest on July 24, 2022
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| Senior co-managers: | ABN Amro Inc., Barclays, BNY Capital Markets Inc., Nomura Securities International, Inc., PNC Capital Markets LLC, Rabo Securities USA, Inc., RBC Capital Markets Corp. and TD Securities (USA) LLC
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| Junior co-managers: | Academy Securities, Inc., Bank of China Ltd., London Branch, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CIBC World Markets Corp., Commerzbank Capital Markets Corp., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., Guzman & Co., ICBC Standard Bank plc, Imperial Capital, LLC, Melvin Securities, LLC, Mizuho Securities USA Inc., National Bank of Canada Financial Inc., Penserra Securities LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc. and Tigress Financial Partners LLC
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