Citigroup Announces Expiration and Final Tender Results of Offers to Purchase Specified Series of Outstanding Notes

NEW YORK--(BUSINESS WIRE)-- Citigroup Inc. (“Citigroup”) announced today the expiration and final tender results of its previously announced cash tender offers (each, an “Offer” and, collectively, the “Offers”) with respect to each series of notes set forth in the first table below (the “Any and All Notes”) and the second table below (the “Maximum Tender Notes,” and together with the Any and All Notes, the “Notes,” and each a “series” of Notes).

These Offers, in which Notes totaling approximately U.S. $569 million (based on current U.S. dollar exchange rates) are being accepted, are consistent with Citigroup’s liability management strategy, and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure. Since 2013, Citigroup redeemed or retired U.S. $28.7 billion of securities, excluding exchanged securities, of which U.S. $6.6 billion was redeemed or retired in 2015, reducing Citigroup’s overall funding costs. Citigroup will continue to consider opportunities to redeem or repurchase securities based on several factors, including, without limitation, economic value, potential impact on Citigroup's net interest margin and borrowing costs, overall remaining tenor of Citigroup's debt portfolio, capital impact, and overall market conditions.

The final Settlement Date (the “Final Settlement Date”) is expected to occur on August 26, 2015 for all series of Notes.

As the Expiration Date for the Offers was August 21, 2015, the deadline for tendering Notes pursuant to the Offers has now passed.

On the Early Tender Date, Citigroup accepted an aggregate principal amount of approximately U.S. $106 million (based on current U.S. dollar exchange rates) of the 5.365% Subordinated Notes due 2036, the 5.875% Senior Notes due 2037 and the 6.875% Senior Notes due 2038 and purchased such Any and All Notes on the Early Settlement Date. Citigroup has accepted all Any and All Notes validly tendered after the Early Tender Date, but on or prior to the Expiration Date, of approximately U.S. $8,000 aggregate principal amount (based on current U.S. dollar exchange rates). Holders of these Any and All Notes are entitled to receive the applicable Tender Offer Consideration which is equal to the Total Consideration applicable to such Notes less the Early Tender Premium, plus accrued and unpaid interest to, but not including, the Final Settlement Date.

On the Early Tender Date, Citigroup accepted an aggregate principal amount of approximately U.S. $463 million of the 5.850% Senior Notes due 2034, the 5.875% Subordinated Notes due 2033, the 6.000% Subordinated Notes due 2033 and the 6.125% Subordinated Notes due 2036 and purchased such Maximum Tender Notes on the Early Settlement Date. Because the applicable Maximum Series Tender Cap would not be exceeded, Citigroup has accepted all Maximum Tender Notes validly tendered after the Early Tender Date, but on or prior to the Expiration Date, of approximately U.S. $214,000 aggregate principal amount. Holders of these Maximum Tender Notes are entitled to receive the applicable Tender Offer Consideration which is equal to the Total Consideration applicable to such Notes less the Early Tender Premium, plus accrued and unpaid interest to, but not including, the Settlement Date.

The following tables set forth the aggregate principal amount of each series of Notes that were validly tendered and were accepted for purchase on or prior to the Expiration Date. All Notes validly tendered pursuant to the Offers have been accepted for purchase.

The Offers were made pursuant to the offer to purchase dated July 27, 2015 (as amended or supplemented through the Expiration Date, the “Offer to Purchase”), and the related letter of transmittal for the Notes denominated in U.S. dollars (the “U.S. Dollar Notes”) (as it may be amended or supplemented through the Expiration Date, the “U.S. Dollar Notes Letter of Transmittal”) and the related letter of transmittal for the Notes denominated in Canadian dollars (the “CAD Notes”) (as it may be amended or supplemented through the Expiration Date, the “CAD Notes Letter of Transmittal,” and, together with the U.S. Dollar Notes Letter of Transmittal, 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. All references to “U.S. $” or “$” refer to U.S. dollars and “C$” refer to Canadian dollars.

Citigroup retained its affiliate, Citigroup Global Markets Inc., to serve as the sole dealer manager for the Offers. Global Bondholder Services Corporation was retained to serve as the depositary and information agent with respect to the U.S. Dollar Notes. Kingsdale Shareholder Services was retained to serve as the depositary and information agent with respect to the CAD Notes. Copies of the Offer to Purchase and the Letters of Transmittal may be obtained at no charge from Global Bondholder Services Corporation or Kingsdale Shareholder Services Inc., as applicable.

This press release is neither an offer to purchase nor a solicitation to buy any of these Notes nor is it a solicitation for acceptance of any of the Offers. Citigroup made the Offers only by, and pursuant to the terms of, the Offer to Purchase and the related Letters of Transmittal. The Offers have not been made to (nor have tenders of Notes been accepted from or on behalf of) holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This announcement must be read in conjunction with the Offer to Purchase and, where applicable, the related Letters of Transmittal.

United Kingdom. The communication of the Offer to Purchase and any other documents or materials relating to the Offers is not being made and such documents and/or materials have not been approved by an authorized person for the purposes of Section 21 of the Financial Services and Markets Act 2000. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or within Article 43(2) of the Order, or high net worth companies, and other persons to whom it may lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order.

Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com.

Certain statements in this release, including, without limitation, the anticipated consummation of the Offers and Citigroup’s continued successful execution of its liability management strategy, are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission and Canadian securities law. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, including, without limitation, (i) the level of participation in the Offers, and (ii) the precautionary statements included in this release and those contained in Citigroup’s filings with the U.S. Securities and Exchange Commission and applicable Canadian securities regulators, including, without limitation, the “Risk Factors” section of Citigroup’s 2014 Annual Report on Form 10-K.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150824005548/en/

Citigroup Inc.
Media:
Mark Costiglio, 212-559-4114
or
Investors:
Susan Kendall, 212-559-2718
or
Fixed Income Investors:
Peter Kapp, 212-559-5091

Source: Citigroup Inc.

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