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Citi tenders for up to $285 million equivalent of 4.5%, 4.25% notes
By Angela McDaniels
Tacoma, Wash., Feb. 3 - Citigroup Inc. began a tender offer for its £497,525,000 of outstanding 4.5% subordinated notes due 2031 and €890,246,000 of outstanding 4.25% fixed-rate/floating-rate callable subordinated notes due 2030, according to a company news release.
The company plans to accept for purchase up to $285 million equivalent of notes in the offer. It will determine the allocation of funds between each series of notes at its discretion, and it reserves the right to accept for purchase significantly more or less (or none) of the notes of any one series as compared to the other.
The price for the sterling notes will be the benchmark security rate plus the purchase spread. The benchmark security is the 4.25% U.K. Treasury Gilt due June 2032. The purchase spread will be determined through a modified Dutch auction procedure and cannot be more than 135 basis points.
The price for the euro notes will be determined through a modified Dutch auction procedure and will be no less than par.
The company will also pay accrued interest.
The offer will end at 11 a.m. ET on Feb. 10.
The benchmark security rate will be set at 9 a.m. ET on Feb. 11. The clearing spread, the purchase prices and the tender results will be announced that day.
The settlement date is expected to be Feb. 18.
The company said it redeemed $12 billion of securities in 2013 and will continue to consider opportunities to redeem or repurchase securities.
The dealer manager is Citigroup Global Markets Ltd. (44 20 7986 8969 or liabilitymanagement.europe@citi.com). Citibank, NA, London Branch is the tender agent.
Citigroup is a financial services company based in New York City.
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