Citigroup Capital XII, XXI to redeem all of 8.5%, 8.3% preferreds

By Tali David

Minneapolis, June 11 - Citigroup Inc. announced that Citigroup Capital XII called all of its $8.5% fixed-rate/floating-rate trust preferred securities and Citigroup Capital XXI called all of its 8.3% fixed-rate/floating-rate enhanced trust preferred securities, according to a press release.

The 8.5% preferreds will be redeemed at $25 per share plus any accrued distributions on July 18.

The 8.3% preferreds will be redeemed at $1,000 per share plus any accrued distributions, also on July 18.

The redemption follows the release on June 7 by the board of governors of the Federal Reserve System of a notice of proposed rulemaking addressing, among other matters, Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to clarify the timing of when, and in what proportions, outstanding trust preferred securities issued before May 19, 2010 will no longer qualify as Tier 1 Capital under existing regulatory capital guidelines applicable to Citigroup.

Citi said that it determined, based on a legal opinion of counsel, that this notice of proposed rulemaking constitutes a "regulatory capital event."

The financial services company is based in New York.

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