Citigroup Announces the Acceleration of Two Series of ETNs
April 01 2020 - 8:29AM
Business Wire
Citigroup Global Markets Holdings Inc. (“CGMHI”) announced today
that it will accelerate at its option, and in full, the two series
of exchange-traded notes listed in the table below (the
“ETNs”).
ETN Name
Exchange
ETN Ticker
CUSIP
Underlying Index
VelocityShares® Short LIBOR ETNs
NYSE Arca
DLBR
17325K529
Janus Velocity Short LIBOR Index
VelocityShares® Long LIBOR ETNs
NYSE Arca
ULBR
17325K743
Janus Velocity Long LIBOR Index
Holders of the ETNs will receive a cash payment per ETN in an
amount (the “Optional Acceleration Redemption Amount”) equal to the
closing indicative value of the respective series of ETNs on the
final valuation date of the Optional Acceleration Valuation Period.
The Optional Acceleration Valuation Period will be the period of
five consecutive index business days beginning on April 7, 2020 and
expected to end on April 14, 2020. The payment upon optional
acceleration is based upon a declining exposure to the ETNs’
underlying index over the Optional Acceleration Valuation Period.
The closing indicative value of the ETNs will be calculated on each
day after the first index business day of the Optional Acceleration
Valuation Period using an alternative closing level of the
applicable underlying index calculated by the ETN calculation
agents that does not give effect to any change to the weights of or
the applicable underlying index’s hypothetical exposure to the
underlying Eurodollar futures contracts that may take place under
the index methodology after the Optional Acceleration Valuation
Period begins. The Optional Acceleration Redemption Amount is
expected to be paid to investors on April 17, 2020. More
information on the manner in which the Optional Acceleration
Redemption Amount will be calculated, including the circumstances
in which the dates specified herein may be postponed, is available
in the pricing supplement for the ETNs, which is available at the
following hyperlink:
https://www.sec.gov/Archives/edgar/data/200245/000095010317007894/dp79533_424b2-liboretns.htm
As described in more detail in the pricing supplement for the
ETNs, if a trigger event occurs prior to the end of the Optional
Acceleration Valuation Period, holders of the ETNs will not receive
the Optional Acceleration Redemption Amount described above, but
rather an amount determined as set forth in the pricing supplement
for the ETNs.
The last day of trading for the ETNs is expected to be April 16,
2020.
Currently, holders of the ETNs who wish to exercise their early
redemption right are generally required to redeem a minimum number
of the ETNs of the same series and may be subject to an early
redemption charge. After the close of trading on April 1, 2020,
CGMHI will irrevocably waive the required minimum redemption amount
and the early redemption charge for the ETNs.
In connection with its determination to accelerate the ETNs,
CGMHI has determined that it will discontinue “creations” of the
ETNs on and after April 7, 2020. The discontinuance of creations
means that CGMHI will no longer issue additional ETNs in the series
described in this press release, and its affiliate Citigroup Global
Markets Inc. will no longer sell additional ETNs in the series
described in this press release, on or after April 7, 2020.
As discussed in the pricing supplement for the ETNs, the
discontinuance of creations of the ETNs may impact the trading
price of the ETNs, which may result in a premium of the trading
price over the indicative value of the ETNs. Any premium may be
reduced or eliminated at any time and, if not eliminated earlier,
will certainly be eliminated at the time of redemption of the ETNs,
as the amount payable upon redemption will be based on the ETNs’
indicative value. Purchasing ETNs at a market price over the
indicative value of the ETNs is likely to lead to significant
losses.
None of the other exchange-traded notes issued by CGMHI are
affected by this announcement.
© 2020 Citigroup Inc. Member SIPC. All rights reserved. Citi and
Citi and Arc Design are trademarks and service mark of Citigroup
Inc. or its affiliates and are used and registered throughout the
world.
###
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, transaction services, and
wealth management.
Additional information may be found at http://www.citigroup.com
| Twitter: @Citi | YouTube: http://www.youtube.com/citi | Blog:
http://blog.citigroup.com/| Facebook: http://www.facebook.com/citi
| LinkedIn: www.linkedin.com/company/citi.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200401005202/en/
Media: Scott Helfman +1 212-816-9241
Citigroup (NYSE:C)
Historical Stock Chart
From Aug 2024 to Sep 2024
Citigroup (NYSE:C)
Historical Stock Chart
From Sep 2023 to Sep 2024