Citigroup begins tender offers for $410 million of two note series

By Susanna Moon

Chicago, Sept. 10 – Citigroup Inc. said it began tender offers for up to $410 million of $3.77 billion of notes issued in two series.

Pricing will be set at 2 p.m. ET on Sept. 23 using the yield of the bid-side price of the reference security plus a fixed spread as follows:

• $1.25 billion 5.5% notes due 2017, with $135 million offer sub-cap, will be priced using 0.875% Treasury notes due Aug. 15, 2017 plus 55 basis points; and

• $2,522,008,000 6.125% notes due 2018, with $275 million offer sub-cap, will be based on 1.625% Treasury notes due Aug. 31, 2019 plus 30 bps.

The total payment will include an early tender premium of $30.00 per $1,000 of notes tendered by 5 p.m. ET on Sept. 22, the early tender date.

The tender offers will end at 11:59 p.m. ET on Oct. 6. The offers began Sept. 9.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be Sept. 25 for early tendered notes.

Tendered notes may be withdrawn by the early tender date.

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 tender offers are consistent with Citigroup’s liability management strategy and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure, according to a company press release.

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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