Citigroup seeks consents to terminate covenants of 6% trust preferreds

By Marisa Wong

Madison, Wis., Jan. 21 - Citigroup Inc. announced that it has started a consent solicitation from holders of the 6% trust preferred securities issued by Citigroup Capital XI to terminate each of 10 capital replacement covenants.

The proposed termination of the capital replacement covenants requires, among other conditions, the consent of holders of a majority in liquidation amount of the outstanding preferreds.

Citigroup is soliciting consents from holders of record at 5 p.m. ET on Jan. 21.

The consent solicitation will expire at 5 p.m. ET on Feb. 17.

If Citigroup receives the needed consents, holders who deliver their consents by the expiration time will receive a 0.5% consent fee.

Consents that have been delivered on or prior to the date on which the required consents have been obtained, the consent date, may be revoked before the consent date but not after.

Citigroup Global Markets Inc. (800 558-3745) is the solicitation agent, and Global Bondholder Services Corp. (866 470-4300) is the information agent.

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