By Stephanie N. Rotondo
Phoenix, April 20 – Citigroup Inc. priced $2 billion of 5.95% $1,000-par series P fixed-to-floating rate noncumulative preferred stock on Monday, according to a market source.
Price talk was in the 6.125% area.
Citigroup Global Markets Inc. is the bookrunner.
The dividend will be fixed until May 15, 2025 and will be payable semiannually during that time. After that date, the issue will begin floating at Libor plus 390.5 basis points and will be payable quarterly.
The preferreds become redeemable May 15, 2025 or within 90 days of a regulatory capital treatment event. The redemption price is par plus accrued dividends.
The new securities will not be listed on any exchange.
The New York-based banking institution will use proceeds for general corporate purposes.
| Issuer: | Citigroup Inc.
|
| Securities: | Series P fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $2 billion
|
| Maturity: | Perpetual
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Dividend: | Fixed at 5.95% until May 15, 2025, then floating at Libor plus 390.5 bps
|
| Price: | Par of $1,000
|
| Yield: | 5.95%
|
| Talk: | 6.125% area
|
| Call options: | On or after May 15, 2025 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | April 20
|
| Settlement date: | April 24
|
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