Citigroup tenders for $700 million of outstanding 6.125% notes due 2017

By Susanna Moon

Chicago, Aug. 22 – Citigroup Inc. said it began a tender offer for up to $700 million principal amount of its $3,865,935,000 outstanding 6.125% notes due 2017.

Pricing will be set at 2 p.m. ET on Sept. 8 using the yield to maturity of the bid-side price of the 0.875% U.S. Treasury note due Aug. 15, 2017 plus a fixed spread of 82 basis points.

The total purchase price will include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 5, the early tender date.

The offer will end at 11:59 p.m. ET on Sept. 19. Tendered notes may be withdrawn by 5 p.m. ET on Sept. 5.

The company also will pay accrued interest to but excluding the settlement date of Sept. 24.

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

The offer is consistent with Citigroup’s liability management strategy and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure, according to a company press release.

Since 2013, Citigroup said it redeemed or retired about $19.6 billion of securities, excluding exchanged securities, of which about $7.3 billion was redeemed or retired in 2014, reducing Citigroup’s overall funding costs.

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

The issuer is a New York-based bank.

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