Citigroup Inc. (“Citigroup”) announced today the
expiration and final tender results of its previously announced
cash tender offers (each, an “Offer” and, collectively, the
“Offers”) with respect to each series of notes set forth in
the first table below (the “Any and All Notes”) and the
second table below (the “Maximum Tender Notes,” and together
with the Any and All Notes, the “Notes,” and each a
“series” of Notes).
These Offers, in which Notes totaling approximately U.S. $569
million (based on current U.S. dollar exchange rates) are being
accepted, are consistent with Citigroup’s liability management
strategy, and reflect its ongoing efforts to enhance the efficiency
of its funding and capital structure. Since 2013, Citigroup
redeemed or retired U.S. $28.7 billion of securities, excluding
exchanged securities, of which U.S. $6.6 billion was redeemed or
retired in 2015, reducing Citigroup’s overall funding costs.
Citigroup will continue to consider opportunities to redeem or
repurchase securities based on several factors, including, without
limitation, economic value, potential impact on Citigroup's net
interest margin and borrowing costs, overall remaining tenor of
Citigroup's debt portfolio, capital impact, and overall market
conditions.
The final Settlement Date (the “Final Settlement Date”)
is expected to occur on August 26, 2015 for all series of
Notes.
As the Expiration Date for the Offers was August 21, 2015, the
deadline for tendering Notes pursuant to the Offers has now
passed.
On the Early Tender Date, Citigroup accepted an aggregate
principal amount of approximately U.S. $106 million (based on
current U.S. dollar exchange rates) of the 5.365% Subordinated
Notes due 2036, the 5.875% Senior Notes due 2037 and the 6.875%
Senior Notes due 2038 and purchased such Any and All Notes on the
Early Settlement Date. Citigroup has accepted all Any and All Notes
validly tendered after the Early Tender Date, but on or prior to
the Expiration Date, of approximately U.S. $8,000 aggregate
principal amount (based on current U.S. dollar exchange rates).
Holders of these Any and All Notes are entitled to receive the
applicable Tender Offer Consideration which is equal to the Total
Consideration applicable to such Notes less the Early Tender
Premium, plus accrued and unpaid interest to, but not including,
the Final Settlement Date.
On the Early Tender Date, Citigroup accepted an aggregate
principal amount of approximately U.S. $463 million of the 5.850%
Senior Notes due 2034, the 5.875% Subordinated Notes due 2033, the
6.000% Subordinated Notes due 2033 and the 6.125% Subordinated
Notes due 2036 and purchased such Maximum Tender Notes on the Early
Settlement Date. Because the applicable Maximum Series Tender Cap
would not be exceeded, Citigroup has accepted all Maximum Tender
Notes validly tendered after the Early Tender Date, but on or prior
to the Expiration Date, of approximately U.S. $214,000 aggregate
principal amount. Holders of these Maximum Tender Notes are
entitled to receive the applicable Tender Offer Consideration which
is equal to the Total Consideration applicable to such Notes less
the Early Tender Premium, plus accrued and unpaid interest to, but
not including, the Settlement Date.
The following tables set forth the aggregate principal amount of
each series of Notes that were validly tendered and were accepted
for purchase on or prior to the Expiration Date. All Notes validly
tendered pursuant to the Offers have been accepted for
purchase.
Any and All
Notes
Title of Security CUSIP / ISIN
Exchange
Listing
Principal Amount
Outstanding
Aggregate Principal Amount
Tendered Pursuant to
the Offer
Aggregate Principal Amount
Accepted Pursuant to
the Offer
5.365%
Subordinated Notes
due 2036
172967DJ7 /
CA172967DJ71
— C$228,393,000 C$90,267,000 C$90,267,000
5.875%
Senior Notes
due 2037
172967EC1 /
US172967EC18
Luxembourg
Stock Exchange
$123,210,000 $5,639,000 $5,639,000
6.875%
Senior Notes
due 2038
172967EP2 /
US172967EP21
Luxembourg
Stock Exchange
$320,904,000 $31,578,000 $31,578,000
Maximum Tender
Notes
Title of Security CUSIP / ISIN
Exchange
Listing
Principal Amount
Outstanding
Maximum Series
Tender Cap
Aggregate Principal
Amount Tendered
Pursuant to the Offer
Aggregate Principal
Amount Accepted
Pursuant to
the Offer
5.850%
Senior Notes
due 2034
172967CT6 /
US172967CT60
Luxembourg
Stock Exchange
$213,483,000 $100,000,000 $21,733,000 $21,733,000
5.875%
Subordinated Notes
due 2033
172967BU4 /
US172967BU43
Luxembourg
Stock Exchange
$597,425,000 $180,000,000 $45,910,000 $45,910,000
6.000%
Subordinated Notes
due 2033
172967CC3 /
US172967CC36
Luxembourg
Stock Exchange
$806,524,000 $250,000,000 $131,829,000 $131,829,000
6.125%
Subordinated Notes
due 2036
172967DR9 /
US172967DR95
Luxembourg
Stock Exchange
$989,931,000 $300,000,000 $263,660,000 $263,660,000
The Offers were made pursuant to the offer to purchase dated
July 27, 2015 (as amended or supplemented through the Expiration
Date, the “Offer to Purchase”), and the related letter of
transmittal for the Notes denominated in U.S. dollars (the “U.S.
Dollar Notes”) (as it may be amended or supplemented through
the Expiration Date, the “U.S. Dollar Notes Letter of
Transmittal”) and the related letter of transmittal for the
Notes denominated in Canadian dollars (the “CAD Notes”) (as
it may be amended or supplemented through the Expiration Date, the
“CAD Notes Letter of Transmittal,” and, together with the
U.S. Dollar Notes Letter of Transmittal, the “Letters of
Transmittal”), which set forth in more detail the terms and
conditions of the Offers. Capitalized terms used but not otherwise
defined in this announcement shall have the meaning given to them
in the Offer to Purchase. All references to “U.S. $” or “$” refer
to U.S. dollars and “C$” refer to Canadian dollars.
Citigroup retained its affiliate, Citigroup Global Markets Inc.,
to serve as the sole dealer manager for the Offers. Global
Bondholder Services Corporation was retained to serve as the
depositary and information agent with respect to the U.S. Dollar
Notes. Kingsdale Shareholder Services was retained to serve as the
depositary and information agent with respect to the CAD Notes.
Copies of the Offer to Purchase and the Letters of Transmittal may
be obtained at no charge from Global Bondholder Services
Corporation or Kingsdale Shareholder Services Inc., as
applicable.
This press release is neither an offer to purchase nor a
solicitation to buy any of these Notes nor is it a solicitation for
acceptance of any of the Offers. Citigroup made the Offers only by,
and pursuant to the terms of, the Offer to Purchase and the related
Letters of Transmittal. The Offers have not been made to (nor have
tenders of Notes been accepted from or on behalf of) holders of
Notes in any jurisdiction in which the making or acceptance thereof
would not be in compliance with the securities, blue sky or other
laws of such jurisdiction. This announcement must be read in
conjunction with the Offer to Purchase and, where applicable, the
related Letters of Transmittal.
United Kingdom. The communication of the Offer to
Purchase and any other documents or materials relating to the
Offers is not being made and such documents and/or materials have
not been approved by an authorized person for the purposes of
Section 21 of the Financial Services and Markets Act 2000.
Accordingly, such documents and/or materials are not being
distributed to, and must not be passed on to, the general public in
the United Kingdom. The communication of such documents and/or
materials as a financial promotion is only being made to those
persons in the United Kingdom falling within the definition of
investment professionals (as defined in Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the “Order”) or within Article 43(2) of the Order, or
high net worth companies, and other persons to whom it may lawfully
be communicated in accordance with Article 49(2)(a) to (d) of the
Order.
Citigroup, the leading global bank, has approximately 200
million customer accounts and does business in more than 160
countries and jurisdictions. Citigroup provides consumers,
corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and
credit, corporate and investment banking, securities brokerage,
transaction services, and wealth management. Additional information
may be found at www.citigroup.com.
Certain statements in this release, including, without
limitation, the anticipated consummation of the Offers and
Citigroup’s continued successful execution of its liability
management strategy, are “forward-looking statements” within
the meaning of the rules and regulations of the U.S. Securities and
Exchange Commission and Canadian securities law. These statements
are based on management’s current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ
materially from those included in these statements due to a variety
of factors, including, without limitation, (i) the level of
participation in the Offers, and (ii) the precautionary statements
included in this release and those contained in Citigroup’s filings
with the U.S. Securities and Exchange Commission and applicable
Canadian securities regulators, including, without limitation, the
“Risk Factors” section of Citigroup’s 2014 Annual Report on Form
10-K.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150824005548/en/
Citigroup Inc.Media:Mark Costiglio,
212-559-4114orInvestors:Susan Kendall, 212-559-2718orFixed Income
Investors:Peter Kapp, 212-559-5091
Citigroup (NYSE:C)
Historical Stock Chart
From Aug 2024 to Sep 2024
Citigroup (NYSE:C)
Historical Stock Chart
From Sep 2023 to Sep 2024