By Stephanie N. Rotondo
Phoenix, April 23 - Citigroup Inc. priced a $1.25 billion offering of 5.35% $1,000-par series D fixed-to-floating rate noncumulative perpetual preferred stock, according to a market source.
The preferreds (Expected ratings: B1/BB/BB) will be issued as depositary shares representing a 1/25th interest.
Citigroup Global Markets Inc. is the bookrunner.
While the dividend is fixed, dividends will be payable semiannually on the 15th day of May and November. Beginning Aug. 15, 2023, the preferreds will float at a rate of three-month Libor plus 346.6 basis points and the payments will be made quarterly.
The New York-based bank can call the preferreds on or after May 15, 2023 in whole or in part at par plus accrued dividends. The securities can also be redeemed in whole within 90 days of a regulatory capital treatment event.
Proceeds will be used for general corporate purposes.
| Issuer: | Citigroup Inc.
|
| Securities: | Series D fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $1.25 billion
|
| Maturity: | Perpetual
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Dividend: | 5.35% through Aug. 15, 2023, then at Libor plus 346.6 bps
|
| Price: | Par of $1,000
|
| Yield: | 5.35%
|
| Talk: | 5.375% to 5.5%
|
| Call options: | On or after May 15, 2023 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Expected ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Fitch: BB
|
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