Citigroup Announces Redemption of Series O Preferred Stock
February 25 2020 - 4:35PM
Business Wire
Citigroup Inc. is redeeming, in whole, all $1.5 billion
aggregate liquidation preference of Depositary Shares representing
interests in its 5.875% Fixed Rate/Floating Rate Noncumulative
Preferred Stock, Series O (the “Preferred Stock”).
The redemption date for the Preferred Stock and related
Depositary Shares is March 27, 2020. The cash redemption price,
payable on March 27, 2020 for each Depositary Share, will equal
$1,000. Holders of record on March 17, 2020 will receive the
previously declared regular semi-annual dividend of $29.375 due on
March 27, 2020.
The redemption announced today is consistent with Citigroup’s
liability management strategy, and reflects its ongoing efforts to
enhance the efficiency of its funding and capital structure.
Citigroup’s redemptions are based on several factors, including
without limitation, the economic value, regulatory changes,
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.
Citigroup’s Tier 1 Capital and Tier 1 Capital ratio will be
substantially unaffected by the planned redemption. Citigroup’s
Tier 1 Capital and its Tier 1 Capital ratio are expected to
decrease by approximately $1.5 billion and approximately 13 basis
points, respectively. The redemption is consistent with Citigroup’s
capital actions submitted to the Federal Reserve Board as part of
the 2019 Comprehensive Capital Analysis and Review.
Beginning on the redemption date, the Depositary Shares
representing the redeemed Preferred Stock will no longer be
outstanding and dividends will no longer accrue on such
securities.
Computershare Trust Company, N.A. (“Computershare”) is the
paying agent for the Depositary Shares. The paying agent’s address
is Computershare Trust Company, Attn: Corporate Actions, 150 Royall
Street, Canton, MA 02021. Questions relating to the notice of
redemption and related materials should be directed to
Computershare via telephone at 1-888-250-3985.
For further information on the Preferred Stock and the related
Depositary Shares, please see the prospectus at the following web
address:
https://www.citigroup.com/citi/fixedincome/data/FinalProSupp.pdf
Citi
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 www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
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