Citigroup lift tender cap in offer for three note series to $510 million

By Jennifer Chiou

New York, Nov. 26 - Citigroup Inc. announced that it has increased the maximum amount of notes that it will accept in the tender offers for its $377,526,000 of outstanding 5.85% notes due 2034, $433,728,000 of outstanding 5.875% notes due 2037 and $1,198,746,000 of outstanding 6.875% notes due 2038.

According to a news release, the company will now accept up to $510 million total of the notes, augmented from $450 million.

The company is offering to purchase up to $75 million principal amount of 5.85% notes, up to $135 million principal amount of 5.875% notes and up to $300 million principal amount of 6.875% notes. The cap for the 5.875% notes was previously $75 million.

The offers will expire at 11:59 p.m. ET on Dec. 10.

As of the early deadline of 5 p.m. ET on Nov. 25, holders had tendered $51,285,000 of 5.85% notes, $130.79 million of 5.875% notes and $280,645,000 of 6.875% notes.

As reported, the total consideration will include an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date.

The total consideration for each series of notes will equate to a yield to maturity equal to a fixed spread over the bid-side price of the 3.625% Treasury due Aug. 15, 2043 at 2 p.m. ET on Nov. 26. The fixed spread is 120 basis points for the 5.85% notes and 125 bps for the other two series.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Dec. 13.

Among other conditions, the tender offers are subject to the condition that holders tender a principal amount of each series of notes equal to the cap applicable to each such series of notes.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The depositary and information agent is Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

Citigroup is a financial services company based in New York.

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