Citigroup (NYSE: C) Offered Buy Back $1.1 Billion in Notes Back Early

Posted by on Apr 26th, 2010

Citigroup (NYSE: C) made an offer to purchase back $1.1 billion worth of notes coming due later this year and in early 2011 in hopes to reduce its interest payments.

The New York-based bank said that the repurchase will not reduce its Tier 2 capital ratio, a measure of its overall financial strength, because the debt is within one year of maturity.

In February 2010, Citi completed the repurchase of3.02 billion worth of senior debt.

Citigroup is offering to buy back:

  • 6.6 percent subordinated fixed-rate notes due Sept. 15.
  • 7.25 percent subordinated notes due 2010.
  • 6.5 percent subordinated fixed-rate notes due Dec. 1.
  • 6.65 percent subordinated notes due Dec. 15.
  • 6.49 percent subordinated notes due Jan. 11.
  • 6.5 percent subordinated notes due Feb. 15 and
  • Deutsche mark-demoninated 5.5 percent subordinated notes due June 30, 2010.

Citigroup said that it will pay cash for any and all of the notes, with the offer expiring on May 6th.

Citigroup Global Markets Inc. will serve as the dealer manager for all of the offers.