Citi sets pricing, reports early tender results as one offer oversubscribed

By Susanna Moon

Chicago, Sept. 23 – Citigroup Inc. said it tallied the early results in the tender offers for up to $410 million of $3.77 billion of notes issued in two series.

Investors had tendered the following amounts as of 5 p.m. ET on Sept. 22, the early tender date:

• $163,733,000 of the $1.25 billion of 5.5% notes due 2017, with a $135 million offer sub-cap; and

• $252,687,000 of the $2,522,008,000 of 6.125% notes due 2018, with a$275 million offer sub-cap.

The company accepted all of the early tendered notes for purchase but will accept no more of the 5.5% notes under the offer because the amount already tendered exceeded the offer sub-cap, according to a company press release.

Holders may continue to tender 6.125% notes until the offer ends at 11:59 p.m. ET on Oct. 6. The offers began on Sept. 9.

Tendered notes may no longer be withdrawn as of the early tender date.

Pricing set

The total purchase price for each $1,000 principal amount will be $1,091.35 for the 5.5% notes and $1,141.63 for the 6.125% notes, according to a separate press release.

The total payment includes an early tender premium of $30.00 per $1,000 of notes tendered by the early tender deadline.

Those who tender after the early tender date will receive the total payment less the early premium.

Pricing was 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:

• For the 5.5% notes, 0.875% Treasury notes due Aug. 15, 2017 plus 55 basis points; and

• For the 6.125% notes, 1.625% Treasury notes due Aug. 31, 2019 plus 30 bps.

The reference yield was 1.037% for the 5.5% notes and 1.764% for the 6.125% notes.

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

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 previous 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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