Citigroup extends deadline, lifts fee, amends record date of 6% trust preferreds consent bid

By Marisa Wong

Madison, Wis., March 7 - Citigroup Inc. said it extended the consent solicitation for the 6% trust preferred securities issued by Citigroup Capital XI to terminate each of 10 capital replacement covenants. Citigroup also increased the consent fee and record date for the solicitation.

Holders may now deliver their consents by 5 p.m. ET on April 1. The expiration date was originally set to be Feb. 17 and was previously extended to March 4.

The solicitation began on Jan. 21. As of 5 p.m. ET on March 4, the required consents had not been obtained, the company noted.

The termination of the capital replacement covenants requires the consent of holders of a majority in liquidation amount of the outstanding trust preferreds.

Citigroup is soliciting consents from holders of record as of 5 p.m. ET on March 7. The record date has been changed from Jan. 21 in connection with the consent deadline extension.

If Citigroup receives the needed consents, holders who deliver their consents by the expiration time will receive a 2% consent fee, increased from 0.5%.

Consents that have been delivered on or prior to the date on which the required consents have been obtained, the consent date, may be revoked before the consent date but not after.

Citigroup Global Markets Inc. (800 558-3745) is the solicitation agent, and Global Bondholder Services Corp. (866 470-4300) is the information agent.

The financial services company is based in New York.

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