Citi begins tender offers for up to $2 billion of five series of notes

By Angela McDaniels

Tacoma, Wash., July 16 – Citigroup Inc. is offering to repurchase up to $2 billion of notes in tender offers for $7.5 billion of notes issued in five series, according to a company news release.

Under the offers, the company will purchase up to

• $250 million of its $762,323,000 2.25% notes due 2015;

• $450 million of its $1,805,000,000 4.587% notes due 2015;

• $300 million of its $936,376,000 5.3% notes due 2016;

• $450 million of its 1.25% notes due 2016; and

• $550 million of its $2.21 billion 5.375% notes due 2020.

If the total amount of a series of notes tendered exceeds the cap for that series, then Citigroup will accept tendered notes of that series on a pro rata basis.

The early tender date is 5 p.m. ET on July 29, and the offers will expire at 11:59 p.m. ET on Aug. 12. The settlement date is expected to be Aug. 15.

Holders who tender by the early tender date will be entitled to receive the total consideration, which will include an early tender premium of $30 per $1,000 principal amount of notes.

The total consideration for each series of notes will be equal to the price that equates to a yield to maturity equal to the applicable fixed spread over the applicable yield, which will be based on the bid-side price of the applicable reference Treasury security at 2 p.m. ET on July 30.

The fixed spread is 45 basis points for the 2.25% notes, 20 bps for the 4.587% notes, 25 bps for the 5.3% notes and 1.25% notes and 105 bps for the 5.375% notes.

The reference Treasury security is the 0.25% Treasury due Aug. 15, 2015 for the 2.25% notes, the 1.625% Treasury due June 30, 2019 for the 5.375% notes and the 0.5% Treasury due June 30, 2016 for the remaining notes.

The company will also pay accrued interest up to but not excluding the settlement date.

The offers are subject to the condition that holders tender an aggregate principal amount of each series of notes greater than or equal to the cap applicable to each such series of notes.

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

Citigroup is a financial services company based in New York City.

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