NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR
RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS
(INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN
SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF
THE UNITED STATES OR THE DISTRICT OF COLUMBIA.
On 17 November 2015, Citigroup Inc. (the “Company”)
announced its invitation to eligible holders (the
“Noteholders”) of its £400,000,000 5.875% Fixed Rate
Subordinated Notes due 2024 (ISIN: XS0195612592) (the “Sterling
2024 Notes”), £400,000,000 6.500% Fixed Rate Notes due 2030
(ISIN: XS0116066449) (the “Sterling 2030 Notes”),
£800,000,000 6.800% Fixed Rate Notes due 2038 (ISIN: XS0372391945)
(the “Sterling 2038 Notes” and, together with the Sterling
2024 Notes and the Sterling 2030 Notes, the “Sterling
Notes”) and €1,250,000,000 4.250% Fixed Rate / Floating Rate
Callable Subordinated Notes due 2030 (ISIN: XS0213026197) (the
“Euro Notes” and, together with the Sterling Notes, the
“Notes” and each a “Series”) to tender their Notes
for purchase by the Company for cash (each such invitation, an
“Offer”, and together, the “Offers”).
The Offers were made on the terms and subject to the conditions
contained in the tender offer memorandum dated 17 November 2015
(the “Tender Offer Memorandum”). Capitalised terms used but
not otherwise defined in this announcement shall have the meanings
given to them in the Tender Offer Memorandum.
As Citi continues to enhance the efficiency of its funding and
capital structure, maintaining an active liability management
strategy allows Citi to replace its higher coupon and other less
efficient securities at attractive levels. Since 2013, Citigroup
redeemed or retired U.S. $33.8 billion of securities, excluding
exchanged securities, of which U.S. $11.7 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, the economic value, potential impact on Citigroup's net
interest margin and borrowing costs, the overall remaining tenor of
Citigroup's debt portfolio, capital impact, as well as overall
market conditions.
The Company hereby announces that it has accepted for purchase
(i) all Sterling 2024 Notes validly tendered in full,
resulting in an aggregate nominal amount repurchased of
£226,920,000; (ii) all Sterling 2030 Notes validly tendered in
full, resulting in an aggregate nominal amount repurchased of
£35,262,000; (iii) all Sterling 2038 Notes validly tendered in
full, resulting in an aggregate nominal amount repurchased of
£28,762,000; and (iv) all Euro Notes validly tendered in full,
resulting in an aggregate nominal amount repurchased of
€80,770,000.
The Purchase Prices for the Notes were determined at or around
1:00 p.m. (London time) today in accordance with the terms set out
in the Tender Offer Memorandum as follows:
Sterling 2024 Notes Sterling 2030
Notes Sterling 2038 Notes Euro
Notes ISIN XS0195612592 XS0116066449 XS0372391945 XS0213026197
Outstanding Nominal Amount £396,428,000 £150,214,000 £479,322,000
€599,909,000 Series Acceptance Amount £226,920,000 £35,262,000
£28,762,000 €80,770,000 Benchmark 5.00% U.K. Treasury Gilt due
March 2025 4.75% U.K. Treasury Gilt due December 2030 4.75% U.K.
Treasury Gilt due December 2038 Interpolated Mid-Swap Rate
Benchmark Rate 1.723% 2.174% 2.494% 0.763% Fixed Spread 155 bps 115
bps 150 bps 125 bps Purchase Yield 3.273% 3.324% 3.994% 2.013%
Purchase Price 118.922% 136.038% 141.452% 118.645% Accrued Interest
2.552% 2.007% 3.066% 3.318% Outstanding Nominal Amount after the
Settlement Date £169,508,000 £114,952,000 £450,560,000 €519,139,000
The applicable Purchase Price, together with Accrued Interest,
will be paid to Noteholders whose Notes have been accepted for
purchase by the Company. The Settlement Date for the Offers is
expected to be 7 December 2015.
Citigroup Inc. has retained its affiliate Citigroup Global
Markets Limited to serve as the Dealer Manager, and its affiliate
Citibank, N.A., London Branch has been retained to serve as Tender
Agent for the Offers.
For additional information regarding the terms of the Offers,
please contact: Citigroup Global Markets Limited at Citigroup
Centre, Canada Square, Canary Wharf, London E14 5LB, Attention:
Liability Management Group, or by telephone at +44 20 7986 8969 or
email liabilitymanagement.europe@citi.com. For any questions
regarding the tender of Notes, please contact Citibank, N.A.,
London Branch at Citigroup Centre, Canada Square, Canary Wharf,
London E14 5LB, Attention: Exchange Team, or by telephone at +44 20
7508 3867 or email exchange.gats@citi.com.
DISCLAIMER
This announcement must be read in conjunction with the Tender
Offer Memorandum. This announcement and the Tender Offer Memorandum
contain important information which should be read carefully before
any decision is made with respect to the Offers. If any Noteholder
is in any doubt as to the action it should take, it is recommended
to seek its own financial advice, including as to any tax
consequences, from its stockbroker, bank manager, solicitor,
accountant or other independent financial adviser. Any individual
or company whose Notes are held on its behalf by a broker, dealer,
bank, custodian, trust company or other nominee must contact such
entity if it wishes to tender Notes in the Offers. None of
Citigroup Inc., the Dealer Manager or the Tender Agent nor any of
their respective directors, employees or affiliates makes any
recommendation whether Noteholders should tender Notes in the
Offers.
###
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi 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, and wealth management.
Additional information may be found at www.citigroup.com.
Certain statements in this release, including without limitation
the anticipated consummation and successful completion of the
Offers (including the satisfaction of the conditions described in
the Tender Offer Memorandum), the possible amendment, extension or
abandonment of one or more of the Offers, and Citigroup Inc.’s
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.
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 in the
Tender Offer Memorandum, and those contained in Citigroup Inc.’s
filings with the U.S. Securities and Exchange Commission, including
without limitation the “Risk Factors” section of Citigroup Inc.’s
2014 Annual Report on Form 10-K.
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version on businesswire.com: http://www.businesswire.com/news/home/20151201006475/en/
CitiCapucine Boncenne02075089355capucine.boncenne@citi.com
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