Citigroup completes upsized $655 million tender for four note series

By Jennifer Chiou

New York, June 14 - Citigroup Inc. announced the wrap of its cash tender offers affecting four series of notes denominated in various currencies. It again raised the tender cap, this time to $655 million of notes from $650 million. The initial cap was $400 million.

The offers ended at 11:59 p.m. ET on June 13.

The any and all offers affected the company's €600,000 of 6.393% subordinated notes due 2023 and C$400 million of 5.365% subordinated notes due 2036.

The waterfall tender offers encompassed the $946.33 million of 5.875% senior notes due 2037 and the $700.12 million of 5.85% senior notes due 2034, both listed on the Luxembourg Stock Exchange. They are listed in order of acceptance priority level.

The company said it has accepted tenders fro all €600,000 of the 6.393% notes, C$171,607,000 of the 5.365% notes, $327,602,000 of the 5.875% notes and $157,594,000 of the 5.85% notes.

Citigroup previously said that the offers are meant to carry out its liability management strategy. Since the beginning of 2012, the bank retired roughly $22.7 billion of senior debt, subordinated debt and preferred and trust preferred securities.

The company was offering €1,210 per €1,000 principal amount for the 6.393% notes, including a €30.00 early tender premium for those who tendered prior to 5 p.m. ET on May 30, the early deadline.

The payout for the 5.365% notes was C$1,018.94 per C$1,000 principal amount. It was determined using the 5% Government of Canada bond due June 1, 2037 and a fixed spread of 255 basis points. The payout includes a C$30.00 early tender premium for those who participated prior to the early deadline.

For each $1,000 principal amount, the payout for the 5.875% notes was $1,188.92. The consideration for the 5.85% notes is $1,181.74. These prices were set using the 3.125% Treasury due Feb. 15, 2043 and a fixed spread of 125 bps for the 5.875% notes and 120 bps for the 5.85% notes. The payouts include a $30.00 early tender premium for those who participated prior to the early deadline.

Pricing was determined on May 31.

Citigroup Global Markets Inc. was the dealer manager (800 558-3745 or 212 723-6106).

Global Bondholder Services Corp. was the depositary and information agent for the notes denominated in U.S. dollars and euros (866 470-3800 or 212 430-3774). Kingsdale Shareholder Services Inc. was the depositary and information agent for notes denominated in Canadian dollars (888 518-1557 or 416 867-2272).

Citigroup is a financial services company based in New York. It launched the offer on May 16.

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