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Press release from Business Wire

Citigroup Announces Upsizing of Offers to Purchase Specified Series of Outstanding Notes

Wednesday, August 28, 2013

Citigroup Announces Upsizing of Offers to Purchase Specified Series of Outstanding Notes

09:00 EDT Wednesday, August 28, 2013

NEW YORK (Business Wire) -- Citigroup Inc. (“Citigroup”) announced today, that it has increased the maximum aggregate principal amount of specified series of notes (the “Notes”) that it will accept (each, a “Maximum Series Tender Cap”) in its previously announced cash tender offers (each, an “Offer” and, collectively, the “Offers”), as set forth in the table below.

These Offers are consistent with Citigroup's liability management strategy, and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure. Since the beginning of 2012, Citigroup has retired approximately US$25 billion of senior debt, subordinated debt, preferred and trust preferred securities, reducing Citigroup's overall funding costs and efficiently deploying its ample liquidity. 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, as well as overall market conditions.

The following table sets forth details of the Notes that are subject to the Offers, the aggregate principal amounts of Notes that were validly tendered and not validly withdrawn prior to 5:00 p.m., New York City time, on August 27, 2013 (the “Early Tender Date”) and the revised Maximum Series Tender Cap for each series of Notes.

                   

Title of Security

CUSIP / ISIN

Exchange
Listing

Principal
Amount
Outstanding

Revised
Maximum Series
Tender Cap

Aggregate
Principal Amount
Tendered Prior to
Early Tender Date

6.375% Notes due

2014

172967 EY 3 / US172967EY38

Luxembourg

Stock

Exchange

$2,325,450,000

$650,000,000

$1,306,645,000

 

5.500% Notes due

2014

172967 EZ 0 / US172967EZ03

Luxembourg

Stock

Exchange

$1,927,004,000

$580,000,000 $1,042,616,000
 

6.010% Notes due

2015

172967 FA 4 / US172967FA43

Luxembourg

Stock

Exchange

$1,693,491,000 $275,000,000 $842,625,000
 

4.750% Notes due

2015

172967 FD 8/ US172967FD81

172967 FJ 5/ USU172967FJ51

U17406 GU 4/ USU17406GU47

Luxembourg

Stock

Exchange

$2,185,809,000 $655,000,000 $1,240,560,000
 

5.850% Notes due

2034

172967 CT 6 / US172967CT60

Luxembourg

Stock

Exchange

$542,526,000 $165,000,000 $209,208,000
 

5.875% Notes due

2037

172967 EC 1 / US172967 EC18

Luxembourg

Stock

Exchange

$618,728,000 $185,000,000 $366,447,000
 

6.875% Notes due

2038

172967 EP 2/ US172967 EP21

Luxembourg

Stock

Exchange

$2,238,746,000 $1,040,000,000 $1,530,712,000
 

The Offers are being made pursuant to the offer to purchase dated August 14, 2013 (as may be amended or supplemented from time to time, the “Offer to Purchase”), and the related letter of transmittal (as may be amended or supplemented from time to time, the “Letter 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.

The Early Tender Date for the Offers has now passed. The applicable Total Consideration, together with Accrued Interest, will be paid to Holders of Notes that were validly tendered on or prior to the Early Tender Date and are accepted for purchase. Holders of Notes that are validly tendered after the Early Tender Date and accepted for purchase will receive the applicable Tender Offer Consideration for such series of Notes, which is equal to the applicable Total Consideration minus the applicable Early Tender Premium. The Offers in respect of the Notes are subject to proration, as described in the Offer to Purchase.

The Expiration Date for the Offers continues to be 11:59 p.m., New York City time, on September 11, 2013, unless extended or earlier terminated. Payment for Notes accepted for purchase will be made on the settlement date, which is anticipated to be September 16, 2013.

Aside from the increases in the Maximum Series Tender Caps, all other terms and conditions of the Offers remain unchanged.

The Withdrawal Date for the Offers has now passed. Notes already tendered pursuant to the Offers may no longer be withdrawn, and any other Notes tendered prior to the Expiration Date may not be withdrawn.

The obligation of Citigroup to accept for purchase, and to pay the Tender Offer Consideration or the Total Consideration, as the case may be, 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 and to proration. Citigroup reserves the right, in its sole discretion, to waive any one or more of the conditions 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 documents and questions regarding the tender of Notes may be directed to Global Bondholder Services Corporation at (866) 807-2200 (toll free) or (212) 430-3774 (collect).

The Offer to Purchase and related Letter of Transmittal were first distributed to holders of Notes on August 14, 2013 and published on the website of the Luxembourg Stock Exchange (www.bourse.lu) on August 14, 2013. Copies of the Offer to Purchase and the Letter of Transmittal may also be obtained at no charge from Global Bondholder Services Corporation.

None of Citigroup, its board of directors, the dealer manager, the depository or the information agent makes any recommendation as to whether any Holder of the Notes subject to the Offers 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 related 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 related 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 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 and successful completion of the Offers (including the satisfaction of the conditions described in the Offers to Purchase), the possible further amendment, extension or abandonment of one or more 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. 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 2012 Annual Report on Form 10-K.

Citigroup Inc.
Media:
Mark Costiglio, 212-559-4114
or
Shannon Bell, 212-793-6206
or
Investors:
Susan Kendall, 212-793-1298
or
Fixed Income Investors:
Peter Kapp, 212-559-5091

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