By Andrea Heisinger
Omaha, Dec. 17 - Citigroup Capital XXI priced $3.5 billion in fixed-to-floating rate 70-year capital securities Monday at a spread of 30-year Treasuries plus 375 basis points, an informed source said.
The notes (A1/A+/AA-) have a coupon of 8.3% until Dec. 21, 2037 after which it steps to three-month Libor plus 417 bps.
The securities were priced at 99.759 to yield 8.322% with a make-whole call option at Treasuries plus 50 bps. From Dec. 21, 2037, the securities are callable at par.
Citigroup Global Markets Inc. was bookrunner.
The bank is based in New York City.
| Issuer: | Citigroup Capital XXI
|
| Issue: | Fixed-to-floating rate capital securities
|
| Amount: | $3.5 billion
|
| Maturity: | Dec. 21, 2077
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Coupon: | 8.3% until Dec. 21, 2037, then steps to Libor plus 417 bps
|
| Price: | 99.759
|
| Yield: | 8.322%
|
| Spread: | Thirty-year Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps, then at par from Dec. 21, 2037.
|
| Trade date: | Dec. 17
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: AA-
|
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