Citigroup begins tender offer for four series of sterling, euro notes

By Marisa Wong

Morgantown, W.Va., April 28 – Citigroup Inc. said it has begun cash tender offers for its €1 billion of 2.125% fixed-rate notes due 2026, £400 million of 6.5% fixed-rate notes due 2030, £800 million of 6.8% fixed-rate notes due 2038 and £500 of million 4.5% fixed-rate subordinated notes due 2031.

The company is offering to purchase up to €100 million of the euro notes, up to £30 million of the sterling 2030 notes, up to £50 million of the sterling 2038 notes and up to £25 million of the sterling 2031 notes, according to a notice.

The offer expires at 11 a.m. ET on May 6.

Pricing will be determined using the following fixed spreads and benchmarks:

• Interpolated mid-swap rate and a fixed spread of 100 basis points for the euro notes;

• 4.75% U.K. Treasury Gilt due December 2030 and a fixed spread of 115 bps for the sterling 2030 notes;

• 4.75% U.K. Treasury Gilt due December 2038 and a fixed spread of 140 bps for the sterling 2038 notes;

• 4.75% U.K. Treasury Gilt due December 2030 and a fixed spread of 185 bps for the sterling 2031 notes.

The purchase price will be set at 8 a.m. ET on May 9.

The company will also pay accrued interest.

The offers are not contingent on the tender of any minimum amount of notes.

Settlement is expected to be on May 13.

Citigroup Global Markets Ltd. (+44 20 7986 8969 or liabilitymanagement.europe@citi.com) is the dealer manager, and Citibank, NA, London Branch (+44 20 7508 3867 or exchange.gats@citi.com) is the tender agent for the offers.

The banking and financial services company is based in New York.

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