Citigroup Inc. (“ Citigroup”) announced today its intention to upsize the aggregate principal amount of outstanding Notes to be accepted for purchase pursuant to the previously announced cash tender offers (each, an “ Offer” and, collectively, the “ Offers”) by Citigroup and its wholly-owned subsidiary Associates First Capital Corporation (“ Associates”) from $675 million to $1.65 billion.
These Offers reflect Citigroup’s continued robust liquidity position and are consistent with its recent liability management initiatives. Year-to-date, Citigroup has decreased its outstanding long-term debt by approximately $11.9 billion through these initiatives, including the previously announced redemptions of trust preferred securities and assuming the completion of these Offers. Coupled with the ongoing natural maturing of long-term debt that requires no refinancing, these initiatives result in lower borrowing costs and reduce the overall level of Citigroup’s long-term debt outstanding. Citigroup will continue to consider opportunities to repurchase its long-term as well as short-term debt based on several factors, including without limitation the economic value, potential impact on Citigroup’s net interest margin and borrowing costs and the overall remaining tenor of its debt portfolio.
Citigroup also announced today the related increase in the Maximum Series Tender Cap for each series of Notes subject to the Offers, such increased Maximum Series Tender Caps as set forth in the table below, and further extended each of the Early Tender Date, the Expiration Date and the Settlement Date. All other terms and conditions of the Offers remain unchanged. Capitalized terms used but not otherwise defined in this announcement shall have the meaning given to them in the offer to purchase dated August 9, 2012 (the “ Offer to Purchase,” as may be amended or supplemented from time to time).The previously announced Early Tender Date for Notes validly tendered pursuant to the Offers has been extended to 5:00 p.m., New York City time, on August 30, 2012 (unless further extended). Notes that are validly tendered prior to such time pursuant to the Offers and accepted for purchase will be entitled to receive the applicable Total Consideration, which is inclusive of the Early Tender Premium, plus accrued and unpaid interest to, but not including, the Settlement Date for such Notes.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV