NEW YORK (
announced a tender offer Thursday to buy back up to $2.1 billion worth of debt that's nearing maturity.
The move represents the company's third such debt repurchase in 2010, part of a "liability management strategy" that Citigroup is pursuing where it uses available cash to retire older vintage debt. The bank completed the repurchase of $3.02 billion worth of senior notes in February, and bought back $535.9 million worth of
in May. It offered to repurchase up to $1.1 billion worth of the subordinated notes.
In this latest tender offer, which expires on June 30, Citigroup is looking to repurchase $410.8 million worth of subordinated notes with a rate of 7.25% that are set to expire Oct. 1, 2010, and roughly $1.7 billion worth of notes with a rate of 5.125% that are set to mature on February 14, 2011.
The bank is offering 101.75% of par value for the 7.25% subordinated notes, and 102.625% of par value for the 5.125% notes; it anticipates a July 6 settlement date.
Citigroup shares were down nearly 2% to $3.82 in late morning action following the news. The stock has
just below the $4 level since mid-May amid tough market conditions, continued uncertainty over the final outcome of the financial reform bill, and the U.S. Treasury continues to exit its ownership of the bank's common stock.
Year-to-date, the stock was up nearly 18% through Wednesday's close. Citigroup is slated to report its second-quarter results on July 16, and the average estimate of analysts polled by
is for a profit of 6 cents a share on revenue of $22.3 billion. Last quarter, the company came through with a surprise profit of 15 cents a share with revenue of $25.4 billion beating Wall Street's consensus view by almost $5 billion.
-- Written by Laurie Kulikowski in New York.