Citi to wrap tenders for £181 million of 4.5% notes, no 4.25% notes

By Susanna Moon

Chicago, Feb. 11 - Citigroup Inc. announced the results in the tender offer for its £497,526,000 of outstanding 4.5% subordinated notes due 2031 and €890,246,000 of outstanding 4.25% fixed-rate/floating-rate callable subordinated notes due 2030.

Citigroup will accept all of the £181 million tendered 4.5% sterling notes, which is the equivalent of about $297 million, and none of the 4.25% notes, according to a company news release.

The offers expired at 11 a.m. ET on Feb. 10, with settlement set for Feb. 18. When the offers began on Feb. 3, the company said it planned to purchase up to $285 million equivalent of notes in the offer but noted that it could adjust the amount.

Pricing is scheduled to be set at 9 a.m. ET on Feb. 11 using the 4.25% U.K. Treasury Gilt due June 2032 plus the purchase spread. The clearing spread over the benchmark security was set through a modified Dutch auction at the maximum purchase spread of 135 basis points for the sterling notes, the release noted.

The price for the euro notes would have been at least par.

The company will also pay accrued interest.

The company said it redeemed $12 billion of securities in 2013 and will continue to consider opportunities to redeem or repurchase securities.

The dealer manager is Citigroup Global Markets Ltd. (44 20 7986 8969 or liabilitymanagement.europe@citi.com). Citibank, NA, London Branch is the tender agent.

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

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