Citigroup wraps tender offer for euro, Swiss franc notes; pricing set

By Susanna Moon

Chicago, May 9 - Citigroup Inc. said it set the clearing spread at 160 basis points in the tender offer for its 4.25% fixed-rate/floating-rate callable subordinated notes due 2030 and plans to purchase all of the notes tendered at or below the clearing spread.

The company also will purchase all of the tendered 4.75% fixed-rate/floating-rate callable subordinated notes due 2017 and 2.75% fixed-rate/floating-rate callable subordinated notes due 2021, according to a company news release.

The tender offers ended at 11 a.m. ET on May 8, with settlement set for May 16.

The company originally planned to purchase up to €400 million principal amount of the two series of euro notes and up to CHF 100 million principal amount of the Swiss franc notes. The company increased the tender cap for Swiss franc notes to CHF 118 million.

The company accepted for purchase €74,538,000 of its €890.24 million 4.25% fixed-to-floaters; €132,834,000 of its €1.2 billion 4.75% fixed-to-floaters and CHF 117,885,000 of its CHF 300 million of 2.75% fixed-to-floaters.

Pricing for the euro notes due 2030 was set at 8 a.m. ET on May 9 using the interpolated mid-swap rate plus a purchase spread determined in a modified Dutch auction. The maximum spread was 180 basis points.

The interpolated mid-swap rate was 1.788% for the 4.25% fixed-to-floaters, with a clearing spread of 160 bps, purchase yield of 3.388% and purchase price of 107.666%.

The purchase price was 98.375% for the 4.75% fixed-to-floaters and 102.5% for the 2.75% fixed-to-floaters.

After settlement, there will be outstanding €815,702,000 of the 4.25% fixed-to-floaters, €1,067,166,000 of the 4.75% fixed-to-floaters and CHF 182,115,000 of the 2.75% fixed-to-floaters.

As previously announced, the purchase price for the euro notes due 2017 will be €983.75 per €1,000 principal amount of notes.

The purchase price for the Swiss franc notes will be CHF 1,025 per CHF 1,000 principal amount of notes.

The dealer manager was Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com). The tender agent was Citibank, NA, London Branch (+44 20 7508 3867 or email exchange.gats@citi.com).

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

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