Published on 9/6/2019 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Citigroup sells $1.5 billion 5% fixed-to-floating non-cumulative preferreds
By James McCandless
San Antonio, Sept. 6 – Citigroup Inc. priced an $1.5 billion offering of $1,000-par series U fixed-to-floating rate non-cumulative preferred stock (Ba1/BB+/BB+/BBBH) with an initial dividend of 5%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Citigroup Global Markets Inc. is the bookrunner.
The dividend is fixed until Sept. 12, 2024, then converts to a floating rate of SOFR plus 381.3 basis points.
The preferreds are redeemable on or after Dec. 12, 2024 at par. Prior to that, they are redeemable within 90 days after a regulatory capital event.
Citigroup plans to use the proceeds for general corporate purposes.
The company does not plan to list the preferreds on any securities exchange.
Citigroup is a New York City-based financial services company.
| Issuer: | Citigroup Inc.
|
| Description: | Series U fixed-to-floating rate non-cumulative preferred stock
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| Amount: | $1.5 billion, or 1.5 million shares
|
| Maturity: | Perpetual
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| Bookrunner: | Citigroup Global Markets Inc.
|
| Senior co-managers: | BMO Capital Markets Corp., Danske Markets Inc., Deutsche Bank Securities Inc., Lloyds Securities Inc., R. Seelaus & Co., LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and Wells Fargo Securities, LLC
|
| Junior co-managers: | ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banco de Sabadell, SA, Bankia, SA, Commonwealth Bank of Australia, Capital One Securities, Inc., Global Oak Capital Markets, Great Pacific Securities, ICBC Standard Bank plc, Imperial Capital, LLC, ING Financial Markets LLC, Mizuho Securities USA LLC, nabSecurities, LLC, North South Capital LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Stern Brothers & Co., Tigress Financial Group LLC, UBS Securities LLC, U.S. Bancorp Investments, Inc. and Williams Capital Group, LP
|
| Dividend: | 5% until Sept. 12, 2024, then converts to a floating rate of SOFR plus 381.3 bps
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| Price: | Par of $1,000
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| Yield: | 5%
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| Call: | On or after Dec. 12, 2024 at par; prior to that, within 90 days after a regulatory capital treatment event
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| Pricing date: | Sept. 5
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| Settlement date: | Sept. 11
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| Ratings: | Moody’s: Ba1
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| S&P: BB+
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| Fitch: BB+
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| DBRS: BBBH
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| Distribution: | SEC registered
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| Listing: | None
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