New Issue: Citigroup details $3 billion of fixed-to-floating notes in two parts

By Devika Patel

Knoxville, Tenn., Jan. 18 – Citigroup Inc. (Baa1/BBB+/A) offered further details about a $3 billion issue of fixed-to-floating rate notes that priced in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The company sold $2 billion of 3.142% notes due Jan. 24, 2023 at a spread of Treasuries plus 75 basis points. The notes will convert to a floating rate equal to Libor plus 72.2 bps after Jan. 24, 2022.

Citigroup priced $1 billion of 3.878% notes due Jan. 24, 2039 at a Treasuries plus 102 bps spread. The notes will convert to a floating rate equal to Libor plus 116.8 bps after Jan. 24, 2038.

Both tranches priced tighter than initial talk.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a financial services company based in New York.

Issuer:	Citigroup Inc.
Amount:	$3 billion
Description:	Fixed-to-floating rate notes
Bookrunner:	Citigroup Global Markets Inc.
Trade date:	Jan. 17
Settlement date:	Jan. 24
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: A
Five-year notes
Amount:	$2 billion
Maturity:	Jan. 24, 2023
Coupon:	3.142% initially; converts on Jan. 24, 2022 to Libor plus 72.2 bps
Spread:	Treasuries plus 75 bps
Call:	Make-whole call at Treasuries plus 15 bps until Jan. 24, 2022, then a par call
Senior co-managers:	ANZ Securities, Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., National Bank of Canada Financial Inc., RBS Securities Inc., Standard Chartered Bank, UBS Securities LLC and Wells Fargo Securities LLC
Junior co-managers:	ABN Amro Inc., Academy Securities, Inc., BB&T Capital Markets, Blaylock Robert Van, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., CastleOak Securities LP, Citizens Capital Markets, Inc., Commonwealth Bank of Australia, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Fifth Third Securities Inc., Great Pacific Securities, Guzman & Co., ING Financial Markets LLC, MUFG, Rabo Securities USA, Inc. and Swedbank AB (publ)
21-year notes
Amount:	$1 billion
Maturity:	Jan. 24, 2039
Coupon:	3.878% initially; converts on Jan. 24, 2038 to Libor plus 116.8 bps
Spread:	Treasuries plus 102 bps
Price guidance:	Treasuries plus 110 bps area
Call:	Make-whole call at Treasuries plus 20 bps until Jan. 24, 2038, then a par call
Senior co-managers:	BBVA Securities Inc., Capital One Securities, Inc., Lloyds Securities Inc., nabSecurities, LLC, Nomura Securities International, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and UniCredit Capital Markets LLC
Junior co-managers:	Bank of China Ltd., London Branch, CIBC World Markets Corp., Commerzbank Capital Markets Corp., Commerz Markets LLC, Drexel Hamilton, LLC, ICBC Standard Bank plc, Imperial Capital, LLC, Loop Capital Markets LLC, MFR Securities, Inc., Mischler Financial Group, Inc., Mizuho Securities USA Inc., R. Seelaus & Co., Inc., RBC Capital Markets Corp., Scotia Capital (USA) Inc., SG Americas Securities LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc. and Westpac Capital Markets, LLC

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