Citigroup announces beginning of tender offer for $7.32 billion notes

By Angela McDaniels

Tacoma, Wash., Jan. 21 - Citigroup Inc. has begun a tender offer for 10 series of its notes, according to a company news release.

The notes have a total outstanding principal amount of roughly $7.32 billion based on U.S. dollar exchange rates as of Jan. 20.

The notes eligible for the offer are Citigroup's:

• $1.25 billion of 4.625% notes due 2010;

• $2 billion of 5.125% notes due 2011;

• ¥25 billion of 0.7% notes due 2010;

• ¥30 billion of 1.51% notes due 2010;

• ¥30 billion of floating-rate notes due June 22, 2010;

• ¥75 billion of 0.74% notes due 2010;

•£500 million of floating-rate notes due 2010;

• CHF 350 million of 1.75% notes due 2010;

• A$450 million of floating-rate notes due June 9, 2010; and

• A$800 million of 5.75% notes due June 9, 2010.

The company is offering 102.25 for the 4.625% U.S. dollar-denominated notes, 103.25 for the 5.125% U.S. dollar-denominated notes, 100.5 for the 1.75% Swiss franc-denominated notes, 100.25 for the 5.75% Australian-denominated notes and par for the remaining notes.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Feb. 8.

The offer will expire at 5 p.m. ET on Feb. 3.

Citigroup said the offer is part of a liability management strategy that uses excess cash to retire generally older vintage debt nearing maturity and is expected to have no impact on the company's structural liquidity.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745 or +44 20 7986-8969). Global Bondholder Services Corp. (866 540-1500 or 212 430-3774) is the depositary and information agent for the U.S. dollar-denominated notes, and Lucid Issuer Services Ltd. (+44 20 7704-08800) is the tender agent and information agent for notes that are not denominated in U.S. dollars and that are held at Euroclear or Clearstream.

Questions about notes that are not denominated in U.S. dollars and that are not held at Euroclear or Clearstream can be directed to the dealer manager.

Citigroup is a financial services company based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.