By Andrea Heisinger
New York, Sept. 30 - The U.S. Department of the Treasury sold $2.246 billion, or 89.84 million shares, of Citigroup Capital XIII 7.875% 30-year trust preferred securities on Thursday at par of $25, a market source said.
The size had initially been announced at $2.2 billion.
The securities (Ba1/BB-/BB-) have a fixed-rate dividend until Oct. 30, 2015 and then a floating-rate of three-month Libor plus 637 basis points until maturity, if not redeemed.
The preferreds are callable on or after Oct. 30, 2015.
Citigroup Global Markets Inc. was global coordinator. Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., UBS Investment Bank and Wells Fargo Securities LLC ran the books.
Citigroup Inc. is guaranteeing the notes and will receive no proceeds from the sale.
The funding arm of Citigroup is based in New York City.
| Issuer: | Citigroup Capital XIII, via the U.S. Department of the Treasury
|
| Guarantor: | Citigroup Inc.
|
| Issue: | Fixed to floating-rate trust preferred securities
|
| Amount: | $2.246 billion (89.84 million shares)
|
| Maturity: | Oct. 30, 2040
|
| Global coordinator: | Citigroup Global Markets Inc.
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., UBS Investment Bank, Wells Fargo Securities LLC
|
| Dividend: | 7.875% up to Oct. 30, 2015, then three-month Libor plus 637 bps until maturity or redemption
|
| Price: | Par of $25
|
| Call: | On or after Oct. 30, 2015
|
| Trade date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB-
|
| Fitch: BB-
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