Citi Prices Remarketing of 4.587% Senior Notes due December 15, 2015
New York – Citi announced today the successful remarketing of $1.875 billion aggregate principal amount of debt securities, representing the third of four series of debt securities required to be remarketed under the terms of Citi’s 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 third series of remarketed debt was reset to 4.587%. The remarketing will settle on December 15, 2010.
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, at a purchase price of $31.83 per share ($7.5 billion in total). The proceeds from this third remarketing will be used to satisfy the third stock purchase obligation on March 15, 2011. As a result of the two remaining required common stock purchases, Citi’s Tier 1 Common and Tangible Common Equity is expected to increase by $1.875 billion in each of the first and third quarters of 2011. Citi’s Tier 1 Capital 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 a Current Report of Form 8-K on November 27, 2007. These documents can be accessed through the website of the U.S. Securities and Exchange Commission.
For further information on this third remarketing, please see the remarketing prospectus which can be accessed through the website of the U.S. Securities and Exchange Commission.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi 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 or www.citi.com.
Citi has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in the registration statement and the other documents Citi has filed with the SEC for more complete information about Citi and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. The file number for Citi’s registration statement is No. 333-157459.
Certain statements in this release, including without limitation the expected impact of the required common stock purchases on Citi’s Tier 1 Common and Tangible Common Equity, are “forward-looking statements” within the meaning of the rules and regulations of the SEC. 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 the actual completion of the expected common stock purchases. For additional information on this factor and the other factors that may affect Citi’s future results, see Citi’s filings with the SEC, including without limitation the “Risk Factors” section of Citi’s 2009 Form 10-K, available on www.sec.gov or www.citigroup.com. Precautionary statements included in such filings should be read in conjunction with this release.
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