Citigroup gets tenders for $93.73 million 6.625% notes, $57.6 million 7.875% notes in exchange offer

By Jennifer Chiou

New York, Jan. 25 - Citigroup Inc. said it obtained tenders for exchange from holders of $93.73 million of the $192,226,000 of 6.625% notes due 2015 and $57.6 million of the $200 million of 7.875% notes due 2025 issued by CitiFinancial Credit Co. (formerly Commercial Credit Co.).

The exchange offer ended at 11:59 p.m. ET on Jan. 24. It began on Dec. 27.

The early deadline had been extended from 5 p.m. ET on Jan. 7.

Holders also validly delivered consents for $79.69 million of the 6.625% notes.

Eligible holders could either exchange their notes for 4.75% notes due 2015 issued by Citigroup or deliver consents without tendering their notes. Those who exchanged were deemed to have delivered consents.

For each $1,000 principal amount, holders will receive $1,077.50 principal amount of new notes in exchange for 6.625% notes and $1,142.50 principal amount of new notes in exchange for 7.875% notes. These amounts include $20.00 of new notes for each note tendered by the early tender/exchange deadline.

Citi said that the accepted notes will be exchanged into $165.75 million of Citigroup's new 4.75% notes due 2015.

The company also said it waived the requisite consent condition for the 7.875% notes, adding that it is extending the solicitation for those notes to 5 p.m. ET on Feb. 7.

Citi stated that it will pay $1.59 in cash for the consents received for the 6.625% notes. It previously received the required consents for its 6.625% notes.

The exchange offer was made only to eligible holders, and the consent solicitations were and are being made to all holders.

An eligible holder is either a qualified institutional buyer as defined in Rule 144A under the Securities Act or outside the United States and a person other than a U.S. person as defined in Rule 902 under the Securities Act.

Interest on the new notes will accrue from Nov. 19. In addition to the new notes, holders who exchange will receive a cash amount equal to the amount of accrued interest on the old notes up to but excluding the settlement date less the amount of accrued interest on the new notes from Nov. 19 up to but excluding the settlement date.

Holders who delivered consents without tendering their notes will receive a consent fee of $20.00 per $1,000 principal amount of notes.

The completion of the exchange offer and solicitations required the receipt of consents from the holders of two-thirds of the outstanding principal amount of each series of notes.

The information agent was Global Bondholder Services Corp. (866 612-1500 or 212 925-1630).

The financial services company is based in New York.

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