Citigroup to settle tenders for $462.78 million of three note series

By Susanna Moon

Chicago, Dec. 11 - Citigroup Inc. said it will accept tenders for $462,783,000 of notes in the offer that ended at 11:59 p.m. ET on Dec. 10.

The company will settle tenders for the following amounts on Dec. 13:

• $51,285,000 of its $377,526,000 outstanding 5.85% notes due 2034;

• $130,793,000 of its $433,728,000 outstanding 5.875% notes due 2037; and

• $280,705,000 of its $1,198,746,000 outstanding 6.875% notes due 2038.

Citigroup said on Nov. 26 that it increased the maximum amount of notes that it will accept in the tender offers to $510 million, up from $450 million.

The company was offering to purchase up to $75 million principal amount of 5.85% notes, up to $135 million principal amount of 5.875% notes and up to $300 million principal amount of 6.875% notes. The cap for the 5.875% notes was previously $75 million.

As of the early deadline of 5 p.m. ET on Nov. 25, holders had tendered $51,285,000 of 5.85% notes, $130.79 million of 5.875% notes and $280,645,000 of 6.875% notes.

Pricing details

The total purchase price for each $1,000 principal amount will be $1,109.44 for the 5.85% notes, $1,112.35 for the 5.875% notes and $1,253.01 for the 6.875% notes, according to a company press release on Nov. 26.

The total purchase price includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date.

Pricing was set at 2 p.m. ET on Nov. 26 using a yield to maturity on the bid-side price of the 3.625% Treasury due Aug. 15, 2043 plus a fixed spread of 120 basis points for the 5.85% notes and 125 bps for the other two series. The reference yield was 3.802%.

Holders will also receive accrued interest up to but excluding the settlement date.

Since the beginning of 2012, Citigroup said it has retired about $28 billion of senior debt, subordinated debt, preferred and trust preferred securities, reducing Citigroup's overall funding costs and efficiently deploying its ample liquidity.

Citigroup said it will continue to consider opportunities to redeem or repurchase securities.

The dealer manager was Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The depositary and information agent was Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

Citigroup is a financial services company based in New York.

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