Citigroup Inc. (“ Citigroup”) announced today the applicable Reference Yield and Total Consideration for the previously announced cash tender offers (each, an “ Offer” and, collectively, the “ Offers”) with respect to each series of Notes listed in the table below (the “ Notes”).
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 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 Total Consideration and Tender Offer Consideration for each series of Notes were determined based on the relevant Reference Yield as of 2:00 p.m., New York City time, on August 28, 2013, in accordance with the terms set forth in the Offer to Purchase by reference to the relevant Fixed Spread and the relevant Reference U.S. Treasury Security as follows:
|Title of Security||CUSIP / ISIN||Maximum Series Tender Cap||Reference U.S. Treasury Security||Bloomberg Reference page||Reference Yield||Fixed Spread (basis points)||Tender Offer Consideration||Total Consideration|
|6.375% Notes due 2014||172967 EY 3 / US172967EY38||$650,000,000||0.500% Treasury due 08/15/2014||FIT4||0.154%||40||$1,022.50||$1,052.50|
|5.500% Notes due 2014||172967 EZ 0 / US172967EZ03||$580,000,000||0.250% Treasury due 07/31/2015||FIT1||0.383%||45||$1,020.09||$1,050.09|
|6.010% Notes due 2015||172967 FA 4 / US172967FA43||$275,000,000||0.250% Treasury due 07/31/2015||FIT1||0.383%||65||$1,035.58||$1,065.58|
|4.750% Notes due 2015||172967 FD 8/ US172967FD81172967 FJ 5/ USU172967FJ51U17406 GU 4/ USU17406GU47||$655,000,000||0.250% Treasury due 07/31/2015||FIT1||0.383%||65||$1,031.55||$1,061.55|
|5.850% Notes due 2034||172967 CT 6 / US172967CT60||$165,000,000||2.875% Treasury due 05/15/2043||FIT1||3.782%||120||$1,082.86||$1,112.86|
|5.875% Notes due 2037||172967 EC 1 / US172967 EC18||$185,000,000||2.875% Treasury due 05/15/2043||FIT1||3.782%||125||$1,085.86||$1,115.86|
|6.875% Notes due 2038||172967 EP 2/ US172967 EP21||$1,040,000,000||2.875% Treasury due 05/15/2043||FIT1||3.782%||130||$1,219.46||$1,249.46|
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