By Angela McDaniels
Tacoma, Wash., Aug. 29 - Citigroup Inc. upsized and extended its tender offers for about $12,370,120,000 of outstanding notes, according to a company news release.
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, the expiration date to 11:59 p.m. ET on Sept. 14 from 11:59 p.m. ET on Sept. 13 and the settlement date to Sept. 18 from Sept. 7.
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 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 of notes will be set at 2 p.m. ET on Aug. 29 using a reference Treasury note plus a fixed spread.
In each case, the total consideration will include 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.
The reference Treasury is the 0.125% Treasury due July 31, 2014 for the 5.125% notes, the 0.5% Treasury due July 31, 2017 for the 6% notes, 6.125% notes and 6.95% notes, the 1.75% Treasury due May 15, 2022 for the 8.5% notes and the 3% Treasury due May 15, 2042 for the 5.85% notes.
The fixed spread is 110 basis points for the 5.125% notes, 220 bps for the 6% notes, 245 bps for the 6.125% notes, 295 bps for the 6.95% notes, 205 bps for the 8.5% notes and 180 bps for the 5.85% notes.
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
|
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