Citi Prices Remarketing of 6.010% Notes due 2015
New York Ė Citi announced today the successful remarketing of $1.875 billion aggregate principal amount of its debt securities, representing the first of four series of debt securities required to be remarketed under the terms of Citiís Upper DECS Equity Units issued to the Abu Dhabi Investment Authority in December 2007. Pursuant to the agreements governing the Upper DECS Equity Units, the interest rate on this first series of remarketed debt was reset to 6.010%. The remarketing will settle on December 15, 2009.
According to the terms of the Upper DECS Equity Units, the Abu Dhabi Investment Authority is obligated to purchase a total of 235.6 million shares of Citi common stock in four equal installments, on March 15, 2010, September 15, 2010, March 15, 2011 and September 15, 2011, for a total purchase price of $7.5 billion. The proceeds from this first remarketing will be used to satisfy the first stock purchase obligation on March 15, 2010. As a result of each of the four required common stock purchases, Citiís Tier 1 Common and Tangible Common Equity are expected to increase by approximately $1.875 billion in each of the first and third quarters of 2010 and 2011. Citiís Tier 1 Capital level will remain unchanged by the required stock purchases.
The terms of the Upper DECS Equity Units, including the remarketing and stock purchase requirements, were originally described by Citi in a press release and transaction summary filed on Form 8-K on November 27, 2007. These documents can be accessed through the website of the U.S. Securities and Exchange Commission (SEC) at the following address: http://www.sec.gov/Archives/edgar/data/831001/000114420407064349/
0001144204-07-064349-index.htm. For further information on this first remarketing, please see the remarketing prospectus which can also be accessed through the SECís website at the following address: http://www.sec.gov/Archives/edgar/data/831001/000095012309067457/
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