By Angela McDaniels
Tacoma, Wash., Aug. 29 - Citigroup Inc. upsized, extended and priced its tender offers for about $12,370,120,000 of outstanding notes, according to company news releases.
The company increased the maximum principal amount of notes it will buy to $1.65 billion from $675 million. It also increased the maximum tender cap for each series of notes other than the 5.125% notes due 2014, 6.95% notes due 2018 and 8.5% notes due 2019.
Citigroup extended the early tender date to 5 p.m. ET on Aug. 30 from 5 p.m. ET on Aug. 28 and the expiration date to 11:59 p.m. ET on Sept. 14 from 11:59 p.m. ET on Sept. 13.
The notes eligible for the offers, the increased caps and the amount of notes tendered as of 5 p.m. ET on Aug. 28 are noted in the first table below.
The 6.95% notes were issued by subsidiary Associates First Credit Corp. The remaining notes were issued by Citigroup.
The total consideration for the floating-rate notes is $1,002.50 for each $1,000 principal amount. The total consideration for each of the remaining series is noted in the second table below and was set at 2 p.m. ET on Aug. 29 using a reference Treasury note plus a fixed spread.
In each case, the total consideration includes an early tender premium of $30.00 per $1,000 of notes tendered by the early tender date.
The company also will pay accrued interest up to but excluding the settlement date, which will be Sept. 18.
On Aug. 23, the company extended the early tender date from 5 p.m. ET on Aug. 22, the price determination date from 2 p.m. ET on Aug. 23 and the expiration date from 11:59 p.m. ET on Sept. 6.
The offers began Aug. 9 and are part of a liability management strategy that uses excess cash to retire generally older vintage debt, the company noted in a previous news release.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager. Global Bondholder Services Corp. (866 873-7700 or 212 430-3774) is the depositary and information agent.
The financial services company is based in New York.
Citigroup early tender offers results
| Notes | Outstanding amount | Series tender cap | Tendered as of Aug. 28
|
| 5.125% notes due 2014 | $1.75 billion | $175 million | $466,742,000
|
| 6% notes due 2017 | $1.93 billion | $405.48 million | $405.48 million
|
| 6.125% notes due 2018 | $2,965,000,000 | $405 million | $575,872,000
|
| 6.95% notes due 2018 | $1 billion | $50 million | $139,996,000
|
| 8.5% notes due 2019 | $2.98 billion | $100 million | $640,735,000
|
| 5.85% notes due 2034 | $995.12 million | $295 million | $451.75 million
|
| Floating-rate notes due 2014 | $750 million | $220 million | $327,105,000
|
| TOTAL | $12,370,120,000 | $1,650,480,000 | $3,007,680,000
|
|
|
| Purchase prices
|
| Notes | Reference Treasury | Fixed spread | Total consideration
|
| 5.125% notes due 2014 | 0.125% Treasury note due July 31, 2014 | 110 bps | $1,060.29
|
| 6% notes due 2017 | 0.5% Treasury note due July 31, 2017 | 220 bps | $1,141.39
|
| 6.125% notes due 2018 | 0.5% Treasury note due July 31, 2017 | 245 bps | $1,153.65
|
| 6.95% notes due 2018 | 0.5% Treasury note due July 31, 2017 | 295 bps | $1,180.12
|
| 8.5% notes due 2019 | 1.75% Treasury note due May 15, 2022 | 205 bps | $1,283.13
|
| 5.85% notes due 2034 | 3% Treasury note due May 15, 2042 | 180 bps | $1,178.98
|
| Floating-rate notes due 2014 | NA | NA | $1,002.50
|
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