Citigroup accepts $579 million notes in tender offers for five series

By Angela McDaniels

Tacoma, Wash., Jan. 3 – Citigroup Inc. accepted $579,246,000 principal amount of notes in its tender offers for $3.6 billion of notes issued in five series, according to a company news release.

As previously reported, the company offered to repurchase the following:

• Any and all of its $204,597,000 of outstanding 4.95% notes due 2043;

• Up to $75 million of its $516,724,000 of outstanding 5.875% subordinated notes due 2033;

• Up to $75 million of its $676,788,000 of outstanding 6.125% subordinated notes due 2036;

• Up to $75 million of its $954,999,000 of outstanding 5.3% subordinated notes due 2044; and

• Up to $250 million of its $1.25 billion of outstanding 4.65% notes due 2045.

Holders tendered $143,885,000 of the 4.95% notes, $35,361,000 of the 5.875% notes, $175,406,000 of the 6.125% notes, $328,743,000 of the 5.3% notes and $832,071,000 of the 4.65% notes.

All of the 4.95% notes and 5.875% notes tendered were accepted. For each of the remaining series of notes, an amount equal to the cap for that series was accepted on a prorated basis.

Holders tendered $17,000 principal amount of 5 7/8% notes after the early tender date but prior to the offer expiration, 11:59 p.m. ET on Dec. 30. All of the other notes of each series were tendered by the early tender date.

For each $1,000 principal amount of notes, the total consideration is $1,071.34 for the 4.95% notes, $1,127.12 for the 5.875% notes, $1,161.83 for the 6.125% notes, $1,069.32 for the 5.3% notes and $1,042.08 for the 4.65% notes.

Each total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 15, the early tender date.

The total consideration for a series of notes is equal to the price that equates to a yield to maturity equal to the applicable fixed spread specified for that series of notes over the applicable yield, which is based on the bid-side price of the 2.25% Treasury due Aug. 15, 2046 at 2 p.m. ET on Dec. 16. The reference yield is 3.19%.

The fixed spread is 130 basis points for the 4.95% notes, 155 bps for the 5.875% notes, 165 bps for the 6.125% notes and the 5.3% notes and 120 bps for the 4.65% notes.

The company also paid accrued interest up to but excluding the settlement date, which was Dec. 20 for notes tendered by the early tender date and Jan. 5 for notes tendered after that time and accepted for purchase.

Each capped tender offer was subject to the condition that holders tender a principal amount of that series of notes greater than or equal to the cap for that series.

Since 2014, Citigroup has redeemed or retired $33.4 billion of securities. The company said it will continue to consider opportunities to redeem or repurchase securities.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) was the dealer manager. Global Bondholder Services Corp. (866 470-4300 or 212 430-3774) was the depositary and information agent.

Citigroup is a banking and financial services company based in New York.

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