Citigroup Inc. (“Citigroup”) today announced the
commencement of offers to purchase for cash (i) any and all of its
notes of the series set forth in the first table below, under the
heading “Any and All Notes,” (the “Any and All Notes”) and
(ii) certain of its notes of the series set forth in the second
table below, under the heading “Maximum Tender Notes,” (the
“Maximum Tender Notes”) up to an aggregate principal amount
with respect to each series of Maximum Tender Notes as set forth in
the second table below (each, a “Maximum Series Tender Cap”)
(all such notes in the first and second table collectively, the
“Notes” and each a “series” of Notes). The offer to
purchase each series of Notes is referred to as an “Offer”
and all such offers are referred to collectively as the
“Offers.” We refer to our offer to purchase each series of
Any and All Notes as an “Any and All Offer” and the offer to
purchase each series of Maximum Tender Notes as a “Maximum
Tender Offer” (and all such offers collectively as the
“Maximum Tender Offers”). The Notes had an aggregate
principal amount outstanding of approximately U.S. $3.60 billion as
of December 1, 2016.
These Offers, currently totaling up to approximately
U.S. $680 million aggregate principal amount of the Notes, are
consistent with Citigroup’s liability management strategy, and
reflect its ongoing efforts to enhance the efficiency of its
funding and capital structure. Since 2014, Citigroup redeemed or
retired U.S. $33.4 billion of securities, 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.
Any and All Notes
Title of
Security
CUSIP / ISIN
ExchangeListing Principal Amount
Outstanding
Reference U.S.
Treasury Security
Bloomberg
Reference page
Early Tender Premium
Fixed Spread
(basis points)
4.950% Notes due 2043 172967HE4 /
US172967HE47
Luxembourg Stock Exchange $204,597,000 2.250% UST due 08/15/2046
FIT1
$30 130
Maximum Tender Notes
Title of
Security
CUSIP / ISIN
ExchangeListing
Principal
Amount Outstanding
Maximum Series Tender Cap
Reference U.S. Treasury
Security
Bloomberg Reference
page
Early
Tender Premium
Fixed Spread (basis points) 5.875%
Subordinated Notes due 2033 172967BU4 /
US172967BU43
Luxembourg Stock Exchange $516,724,000 $75,000,000 2.250% UST due
08/15/2046 FIT1 $30 155 6.125% Subordinated Notes due 2036
172967DR9 / US172967DR95 Luxembourg Stock Exchange $676,788,000
$75,000,000 2.250% UST due 08/15/2046 FIT1 $30 165 5.300%
Subordinated Notes due 2044 172967HS3 / US172967HS33 Luxembourg
Stock Exchange $954,999,000 $75,000,000 2.250% UST due 08/15/2046
FIT1 $30 165 4.650% Notes due 2045 172967JU6 / US172967JU60
Luxembourg Stock Exchange $1,250,000,000
$250,000,000
2.250% UST due 08/15/2046 FIT1 $30 120
The Offers are being made pursuant to the offer to purchase,
dated December 2, 2016 (the “Offer to Purchase,” as may be
amended or supplemented from time to time), and the related letter
of transmittal (the “Letter of Transmittal,” as may be
amended or supplemented from time to time) which set forth in more
detail the terms and conditions of the Offers.
The Offers will expire at 11:59 p.m., New York City time, on
December 30, 2016, unless extended or earlier terminated (such date
and time, as the same may be extended with respect to the Offers,
the “Expiration Date”).
Subject to the terms and conditions set forth in the Offer to
Purchase and the Letter of Transmittal, Holders of Notes that are
validly tendered on or prior to 5:00 p.m., New York City time, on
December 15, 2016, unless extended (such date and time with respect
to an Offer, as the same may be extended with respect to such
Offer, the “Early Tender Date”) and accepted for purchase
shall be entitled to receive the total consideration calculated in
the manner set forth in the Offer to Purchase (the “Total
Consideration”), which includes an early tender premium in the
amount indicated in the table above (the “Early Tender
Premium”). The Total Consideration with respect to each
series of Notes will be equal to the price, determined in
accordance with standard market practice, as described in the Offer
to Purchase, that equates to a yield to maturity equal to the
applicable fixed spread specified for each such series of Notes
over the applicable yield, which shall be based on the bid-side
price of the applicable Reference Treasury Security at 2:00 p.m.,
New York City time, on December 16, 2016 (subject to certain
exceptions set forth in the Offer to Purchase, such time and date,
as the same may be extended with respect to such Offer, the
“Price Determination Date”).
Subject to the terms and conditions set forth in the Offer to
Purchase, Holders of a series of Notes that are validly tendered
after the Early Tender Date but on or before the Expiration Date
and accepted for purchase will receive only the applicable tender
offer consideration, which is equal to the Total Consideration
applicable to that series of Notes minus the Early Tender Premium
(the “Tender Offer Consideration”).
Notes tendered may be withdrawn at any time prior to 5:00 p.m.,
New York City time, on December 15, 2016, unless extended (such
date and time with respect to an Offer, as the same may be extended
with respect to such Offer, the “Withdrawal Date”), but not
thereafter.
Subject to the terms and conditions of the Offers, Citigroup is
offering to purchase any and all of its Any and All Notes validly
tendered pursuant to an Any and All Offer.
Subject to the terms and conditions of the Offers, Citigroup is
offering to purchase an aggregate principal amount of each series
of its Maximum Tender Notes up to the applicable Maximum Series
Tender Cap set forth in the second table above. If the aggregate
principal amount of Maximum Tender Notes of any series validly
tendered in a Maximum Tender Offer exceeds the Maximum Series
Tender Cap for such series, then, subject to the terms and
conditions of the Offers, Citigroup will accept tendered Maximum
Tender Notes of such series on a pro rata basis as described in the
Offer to Purchase.
Citigroup reserves the right, but is under no obligation, at any
point following the Early Tender Date and before the Expiration
Date, to accept for purchase any Notes of a series tendered and not
subsequently withdrawn at or prior to the Early Tender Date (the
“Early Settlement Date”) subject to, in the case of a series
of Maximum Tender Notes, the Maximum Series Tender Cap for that
series. The Early Settlement Date will be determined at Citigroup’s
option and is currently expected to be December 20, 2016, subject
to all conditions of the Offers having been either satisfied or
waived by Citigroup.
If a Maximum Tender Offer is fully subscribed up to the amount
of the Maximum Series Tender Cap for that series of Maximum Tender
Notes as of the Early Tender Date, then any Maximum Tender Notes of
that series that are validly tendered after the Early Tender Date
will not be accepted for purchase. A Maximum Tender Offer for a
series of Maximum Tender Notes that is subscribed over the Maximum
Series Tender Cap for that series as of the Early Tender Date will
be subject to proration. If a Maximum Tender Offer for a series of
Maximum Tender Notes is not fully subscribed up to the Maximum
Series Tender Cap for that series as of the Early Tender Date and
is fully subscribed up to the Maximum Series Tender Cap for that
series as of the Expiration Date, additional Maximum Tender Notes
of that series will be accepted for purchase up to the Maximum
Series Tender Cap, subject to possible proration (if subscribed
over the Maximum Series Tender Cap) and subject to all conditions
to the Offers having been either satisfied or waived by us.
Irrespective of whether we elect to have an Early Settlement
Date, we will purchase any remaining Notes that have been validly
tendered on or prior to the Expiration Date and that we choose to
accept for purchase, subject to all conditions to the Offers having
been either satisfied or waived by us, promptly following the
Expiration Date (the “Settlement Date”). Payment for
purchased Notes will include accrued and unpaid interest from, and
including, the last interest payment date for the Notes up to, but
not including the Early Settlement Date or Settlement Date, as
applicable.
Subject to applicable law, Citigroup may increase the Maximum
Series Tender Cap for one or more series of Maximum Tender Notes at
any time prior to the Settlement Date. Such increase need not be
made equally or on a pro rata basis among the Maximum Series Tender
Caps for all series of Maximum Tender Notes.
The obligation of Citigroup to accept for purchase, and to pay
for Notes validly tendered pursuant to the Offers is subject to,
and conditional upon, the satisfaction or, where applicable, waiver
of a number of conditions described in the Offer to Purchase,
including in the case of the Maximum Tender Notes, the condition
that Holders validly tender an aggregate principal amount of each
series of Maximum Tender Notes greater than or equal to the Maximum
Series Tender Cap applicable to each such series of Maximum Tender
Notes (the “Minimum Tender Condition”). Citigroup reserves
the right, in its sole discretion, to waive any one or more of the
conditions, including the Minimum Tender Condition, at any
time.
Citigroup has retained its affiliate Citigroup Global Markets
Inc. to serve as the sole dealer manager for the Offers. Global
Bondholder Services Corporation has been retained to serve as the
depositary and information agent with respect to the Notes.
For additional information regarding the terms of the Offers,
please contact Citigroup Global Markets Inc. at either (800)
558-3745 (toll free) or (212) 723-6106. Requests for copies of the
Offer to Purchase and Letter of Transmittal and questions regarding
the tender of Notes may be directed to Global Bondholder Services
Corporation at (866) 470-4300 (toll free) or (212) 430-3774
(collect).
None of Citigroup, its boards of directors, the dealer manager,
the depository or the information agent makes any recommendation as
to whether any holder of the Notes should tender or refrain from
tendering all or any portion of the principal amount of the
Notes.
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 is making the Offers
only by, and pursuant to the terms of, the Offer to Purchase and
the Letter of Transmittal. The Offers are not being made to (nor
will tenders of Notes be 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
Letter 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
to other persons to whom it may lawfully be communicated in
accordance with 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 and successful completion of the
Offers (including the satisfaction of the conditions described in
the Offers to Purchase), the possible amendment, extension or
abandonment of one or more of the Offers, and Citigroup’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 those
contained in Citigroup’s filings with the U.S. Securities and
Exchange Commission, including without limitation the “Risk
Factors” section of Citigroup’s 2015 Annual Report on Form
10-K.
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version on businesswire.com: http://www.businesswire.com/news/home/20161202005754/en/
Citigroup Inc.Media:Mark Costiglio,
212-559-4114orInvestors:Susan Kendall, 212-559-2718orFixed Income
Investors:Tom Rogers, 212-559-5091
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