Citi tallies early tenders for two subordinated note series, lifts offer cap; pricing also set

By Susanna Moon

Chicago, June 23 – Citigroup Inc. gave the early results in the offers for two series of notes and lifted the tender cap for one series of notes.

As of 5 p.m. ET on June 22, the early tender date, holders had tendered $193,476,000 principal amount of the company’s 6% subordinated notes due 2033 and $361,168,000 principal amount of its 6.125% subordinated notes due 2036.

The company raised the tender offer cap to $193,476,000 for the 6% notes, because the offer had been oversubscribed by the early deadline, and will accept no more of those notes tendered in the offer, according to a company press release.

When the offer was announced June 9, Citi had planned to buy up to $100 million of its $1 billion of outstanding 6% notes and up to $400 million of its $1,351,320,000 outstanding 6.125% notes.

The offers will continue until 11:59 p.m. ET on July 7, with settlement set for July 10.

Tendered notes may no longer be withdrawn.

Pricing set

The total purchase price for each $1,000 principal amount was set at $1,119.36 for the 6% notes and $1,139 for the 6.125% notes, according to a separate press release.

As previously announced, the total purchase price includes a $30 early tender premium for each $1,000 principal amount of notes tendered by the early deadline.

Pricing was set at 2 p.m. ET on June 23 using a yield to maturity on the bid-side price of the 2.5% Treasury due Feb. 15, 2045 plus a fixed spread of 180 basis points for the 6% notes and 185 bps for the 6.125% notes.

The reference yield was 3.198% for the 6% notes and 3.198% for the 6.125% notes.

Those who tender after the early deadline will receive $1,109.00 for each $1,000 principal amount of 6.125% notes.

The company will also pay accrued interest.

If the offer is oversubscribed, Citigroup said it will accept tendered notes on a pro rata basis.

The tender offers are conditioned on holders tendering a principal amount of each series of notes greater than or equal to the cap for that series.

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. (866 470-4300 or 212 430-3774).

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

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