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”) pursuant to 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. In 2013, Citigroup redeemed approximately U.S. $12 billion of securities reducing its overall funding costs. 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, capital impact, as well as overall market conditions.
The previously announced Early Tender Date for the 4.750% Notes due 2015, 4.700% Notes due 2015 and 2.250% Notes due 2015 has been extended to 11:59 p.m., New York City time, on June 16, 2014, which is the current Expiration Date for the Offers. Holders of these 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. The Early Tender Date for the remaining series of Notes (the " Unextended Series") has now passed (such date being 5:00 p.m., New York City time, on June 2, 2013). Holders of Notes of the Unextended Series that were validly tendered prior to such time pursuant to the Offers and are accepted for purchase will be entitled to receive the applicable Total Consideration, which is inclusive of the Early Tender Premium. Holders of Notes of the Unextended Series that are validly tendered after such time pursuant to the Offers and accepted for purchase will be entitled to receive the Tender Offer Consideration, which equals the Total Consideration minus the Early Tender Premium.
The Expiration Date for the Offers continues to be 11:59 p.m., New York City time, on June 16, 2014 (unless extended or earlier terminated). The Settlement Date is expected to occur promptly thereafter on June 19, 2014. Holders whose Notes are accepted for purchase will also receive accrued and unpaid interest to, but not including, the Settlement Date, for such Notes.
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