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. 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 Offers are being made pursuant to the offer to purchase dated May 19, 2014 (as may be amended or supplemented from time to time, the “ Offer to Purchase”), and the related letters of transmittal (as may be amended or supplemented from time to time, the “ Letters 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 with respect to each series of Notes were determined based on the relevant Reference Yield as of 2:00 p.m., New York City time, on June 3, 2014, in accordance with the terms set forth in the Offer to Purchase by reference to the relevant Fixed Spread and the relevant reference Canadian government security or U.S. Treasury security as follows:
|Title of Security||CUSIP / ISIN||Reference Canadian Government Security||Bloomberg Reference Page||
|Fixed Spread (basis points)||
Tender Offer Consideration
|4.650% Subordinated Notes due 2022||172967DC2 / US172967DC27||1.500% Government of Canada Bond due September 1, 2017||FIT CAN0-50||1.275%||165 bps||C$1,024.03||C$1,054.03|
|5.160% Subordinated Notes due 2027||172967EB3 / CA172967EB37||2.750% Government of Canada Bond due June 1, 2022||FIT CAN0-50||2.089%||195 bps||C$1,045.38||C$1,075.38|
U.S. Dollar Notes
|Title of Security||CUSIP / ISIN||Reference U.S. Treasury Security||Bloomberg Reference Page||Reference Yield||Fixed Spread (basis points)||Tender Offer Consideration||Total Consideration|
|4.750% Notes due 2015||172967FD8 /US172967FD81||0.250% Treasury due May 15, 2015||FIT4||0.101%||45 bps||U.S $1,008.34||U.S. $1,038.34|
|4.700% Notes due 2015||172967CY5 / US172967CY55||0.250% Treasury due May 15, 2015||FIT4||0.101%||45 bps||U.S. $1,009.03||U.S. $1,039.03|
|2.250% Notes due 2015||172967GB1 / US172967GB17||0.375% Treasury due April 30, 2016||FIT1||0.365%||25 bps||U.S. $988.43||U.S. $1,018.43|
|5.875% Subordinated Notes due 2033||172967BU4 / US172967BU43||3.625% Treasury due February 15, 2044||FIT1||3.411%||155 bps||U.S. $1,080.38||U.S. $1,110.38|
|5.850% Notes due 2034||172967CT6 / US172967CT60||3.625% Treasury due February 15, 2044||FIT1||3.411%||120 bps||U.S. $1,133.04||U.S. $1,163.04|
|5.875% Notes due 2037||172967EC1 / US172967EC18||3.625% Treasury due February 15, 2044||FIT1||3.411%||125 bps||U.S. $1,139.93||U.S. $1,169.93|
|6.875% Notes due 2038||172967EP2 / US172967EP21||3.625% Treasury due February 15, 2044||FIT1||3.411%||125 bps||U.S. $1,285.60||U.S. $1,315.60|