Citigroup Announces $2 Billion Redemption of Trust Preferred Securities

NEW YORK--()--Citigroup Inc. is announcing the redemption, in whole, of the following three series of its trust preferred securities:

the 6.000% TRUPS® issued by Citigroup Capital IX (CUSIP: 173066200);
the 6.000% TRUPS® issued by Citigroup Capital XI (CUSIP 17307Q205); and
the 6.35% Enhanced TRUPS® issued by Citigroup Capital XVII (CUSIP 17311H209) (collectively, the “Redeemed TRUPS®”).

The redemption date for each series of Redeemed TRUPS® is April 28, 2014. The cash redemption price payable for each Redeemed TRUPS® on the redemption date will equal:

for Citigroup Capital IX, $25 plus $0.31250 in accumulated and unpaid distributions;
for Citigroup Capital XI, $25 plus $0.12917 in accumulated and unpaid distributions; and
for Citigroup Capital XVII, $25 plus $0.18962 in accumulated and unpaid distributions.

The redemptions announced today are consistent with Citi’s liability management strategy, and reflect Citi’s strategy of continuing to enhance the efficiency of its funding and optimize its capital structure under Basel III. In 2013, Citigroup retired $12 billion of its securities, reducing its overall funding costs. Citigroup will continue to consider opportunities to redeem or repurchase its senior debt, subordinated debt 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 Basel III Tier 1 Common capital and related estimated Tier 1 Common ratio will not be affected by the planned redemptions. In addition, under full implementation of the Basel III rules, Citigroup’s Basel III Tier 1 Capital and related estimated Tier 1 Capital ratio will also not be affected.

The Redeemed TRUPS® are being redeemed, along with the common securities issued by Citigroup Capital IX, Citigroup Capital XI and Citigroup Capital XVII (collectively, the “Capital Trusts”) and held by Citigroup, as a result of the concurrent redemption in whole by Citigroup of the junior subordinated debt securities held by each Capital Trust which underlie the respective series of 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 prospectuses at the following web addresses:

For Citigroup Capital IX:

https://www.sec.gov/Archives/edgar/data/831001/000095012303001004/y83018b4e424b4.txt

For Citigroup Capital XI:

https://www.sec.gov/Archives/edgar/data/1075168/000095012304011041/e02042spe424b2.txt

For Citigroup Capital XVII:

https://www.sec.gov/Archives/edgar/data/831001/000095012307003447/y29332ce424b2.htm

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. Additional information may be found at www.citigroup.com.

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 U.S. Private Securities Litigation Reform Act of 1995. 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 2013 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this release. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Contacts

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

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Contacts

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