Citi accepts tenders for $416.8 million total of 5.5%, 6.125% notes

By Jennifer Chiou

New York, Oct. 7 – Citigroup Inc. said it accepted overall tenders for about $416.8 million of notes in its offers for up to $410 million of $3.77 billion of notes issued in two series.

The offers ended at 11:59 p.m. ET on Oct. 6.

Investors tendered a total of $163,733,000 of the $1.25 billion of 5.5% notes due 2017, which had a $135 million offer sub-cap, and $253,114,000 of the $2,522,008,000 of 6.125% notes due 2018, which had a $275 million offer sub-cap.

The tenders for the 5.5% notes were all received by 5 p.m. ET on Sept. 22, the early tender date. As of that time, $252,687,000 of the 6.125% notes had been tendered.

The total purchase price for each $1,000 principal amount is $1,091.35 for the 5.5% notes and $1,141.63 for the 6.125% notes, according to a 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 tendered after the early tender date will receive the total payment less the early premium. Settlement is anticipated for Oct. 9.

As previously reported, pricing was set at 2 p.m. ET on Sept. 23 using the yield of the bid-side price of a 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 up to but excluding the settlement date, which was Sept. 25 for early tendered notes.

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

The New York-based bank started the offers on Sept. 9.

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