Citigroup Announces $369 Million Redemption of Citigroup Capital X Trust Preferred Securities
New York – Citigroup Inc. is announcing the redemption, in whole, of its 6.100% Enhanced TRUPS® issued by Citigroup Capital X (CUSIP: 173064205) (the “Redeemed TRUPS®”).
The redemption date for the Redeemed TRUPS® is October 1, 2013. The cash redemption price payable for each Redeemed TRUPS® on the redemption date will equal $25 plus $0.0042361 in accumulated and unpaid distributions.
This redemption reflects Citigroup’s ongoing efforts to enhance the efficiency of its funding and capital structure. Since the beginning of 2012 and including the redemption announced today, Citigroup has retired approximately $25 billion of senior debt, subordinated debt, preferred and trust preferred securities, reducing Citigroup’s overall funding costs and efficiently deploying its ample liquidity.
The redemption announced today is consistent with Citi’s liability management strategy, and reflects Citi’s strategy of continuing to optimize the capital structure under Basel III. Citigroup will continue to consider opportunities to redeem or repurchase its senior debt, subordinated debt, preferred and trust preferred 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, as well as overall market conditions.
Citigroup’s Tier 1 Common capital and related Tier 1 Common ratio, either under Basel I or under Basel III, will not be affected by the planned redemption. Citigroup’s Basel I Tier 1 Capital and its Basel 1 Tier 1 Capital ratio are expected to decrease by approximately $0.37B and 4 basis points, respectively. Citigroup’s Basel III Tier 1 Capital and Basel III Tier 1 Capital ratio will not be affected.
The Redeemed TRUPS® are being redeemed, along with the common securities issued by Citigroup Capital X (“Capital X”) and held by Citigroup, as a result of the concurrent redemption in whole by Citigroup of the junior subordinated debt securities held by Capital X which underlie the Redeemed TRUPS®.
Beginning on the redemption date, the Redeemed TRUPS® will no longer be considered outstanding and distributions will no longer accrue on such securities.
The Bank of New York Mellon is the paying agent for the Redeemed TRUPS®.
For further information on the Redeemed TRUPS®, please see the related prospectus at the following web address:
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. 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.
Certain statements in this press release, including without limitation the expected impact of the redemptions on Citigroup’s Tier 1 Capital, Tier 1 Common, net interest margin, borrowing costs and capital position under Basel III, are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including without limitation the actual completion of the announced redemptions, the completion of the final analysis of the capital impact on Citigroup as a result of the redemptions and the factors contained in Citi’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citi’s 2012 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this release.
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