Citigroup raises tender cap for seven series of notes to $3.55 billion

By Jennifer Chiou

New York, Aug. 28 - Citigroup Inc. announced the increase of the maximum amount it will accept in its cash tender offers for several series of notes to up to $3.55 billion from $3.07 billion.

The offers affect $11.5 billion of outstanding notes.

The company also announced pricing and said it will purchase the following:

• Up to $650 million of its $2,325,450,000 of 6.375% notes due 2014 with a total consideration of $1,022.50 per $1,000 principal amount;

• Up to $580 million of its $1,927,004,000 of 5.5% notes due 2014 with a total consideration of $1,020.09;

• Up to $275 million of its $1,693,491,000 of 6.01% notes due 2015 with a total consideration of $1,035.58;

• Up to $655 million of its $2,185,809,000 of 4.75% notes due 2015 with a total consideration of $1,031.55;

• Up to $165 million of its $542,526,000 of 5.85% notes due 2034 with a total consideration of $1,082.86;

• Up to $185 million of its $618,728,000 of 5.875% notes due 2037 with a total consideration of $1,085.86; and

• Up to $1.04 billion of its $2,238,764,000 of 6.875% notes due 2038 with a total consideration of $1,219.46.

If the principal amount of a series of notes tendered exceeds the cap for that series, then Citigroup will accept tendered notes of that series on a pro rata basis.

For each $1,000 principal amount of notes, the total consideration was determined by reference to a fixed spread over the bid-side price of a reference Treasury security at 2 p.m. ET on Aug. 28.

For each note tendered by the early tender date, 5 p.m. ET on Aug. 27, the amount includes a $30.00 early tender premium.

The reference Treasury was the 0.5% Treasury due Aug. 15, 2014 for the 6.375% notes; the 0.25% Treasury due July 31, 2015 for the 5.5% notes, the 6.01% notes and the 4.75% notes; and the 2.875% Treasury due May 15, 2043 for the 5.85% notes, the 5.875% notes and the 6.875% notes.

Holders will also receive accrued interest up to but excluding the Sept. 16 settlement date.

The offer will end at 11:59 p.m. ET on Sept. 11.

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 series of notes.

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

The financial services company is based in New York. It launched the offer on Aug. 14.

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