Citigroup sells $300 million more of 2.9% five-year notes; Empire Life sells C$200 million

By Devika Patel

Knoxville, Tenn., Dec. 9 – Primary activity in the investment-grade bond market on Friday opened with Citigroup, Inc. launching a $300 million add-on to its previously issued $2.25 billion of five-year fixed-rate notes (Baa1/BBB+/A), and Kingston, Ont.-based Empire Life Insurance Co. priced a C$200 million offering of 3.383% fixed-to-floaters through bookrunner CIBC World Markets Inc.

Citigroup priced $300 million of 2.9% five-year notes at 100.082 to yield 2.882%, or 105 basis points over Treasuries. These notes have a make-whole call from June 8, 2017 to Nov. 8, 2021 and then a par call.

Citigroup Global Markets Inc. was the bookrunner.

As previously reported, the New York financial services company priced $2.25 billion of the notes at 99.829 to yield 2.937%, or 105 bps over Treasuries, on Dec. 2.

Empire Life Insurance’s 3.383% fixed-to-floating rate subordinated debentures due Dec. 16, 2026 were assigned an investment-grade rating of A (low) by DBRS Ltd.

The notes bear interest at a fixed rate for the first five years and then carry a coupon equal to the three-month bankers' acceptance rate plus 195 bps for the last five years.

Proceeds will be used for the individual and group life and health insurance and investment company’s regulatory capital and general corporate purposes.

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