1. Citigroup is redeeming $1.5 billion of Preferred Stock Series W. 2. Redemption date set for December 10, 2025. 3. Cash price is $1,000 per Depositary Share. 4. This aligns with Citigroup's liability management strategy. 5. Redemption could improve Citigroup's capital efficiency.
FAQ
Why Bullish?
The redemption strategy indicates financial confidence and efficient capital management, similar to past successful debt redemptions that boosted investor sentiment.
How important is it?
Improving capital efficiency indicates a strong foundational approach for future growth, positively influencing investor perceptions.
Why Long Term?
The actions taken will enhance capital structure over time, positively influencing the stock's performance as market conditions improve.
Citigroup Inc. is redeeming, in whole, all $1.5 billion aggregate liquidation preference of Series W Depositary Shares representing interests in its 4.000% Fixed Rate Reset Noncumulative Preferred Stock, Series W (the "Preferred Stock").
The redemption date is December 10, 2025, for the Preferred Stock and related Depositary Shares (the "Redemption Date"). The cash redemption price, payable on the Redemption Date for each Depositary Share, will equal $1,000. Holders of record on November 26, 2025, will receive the previously declared regular quarterly dividend of $10.00 per Depositary Share payable on the Redemption Date.
The redemption announced today is consistent with Citigroup's liability management strategy and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Citigroup's redemptions are based on several factors, including without limitation, the economic value, regulatory changes, potential impact on Citigroup's net interest margin and borrowing costs, the overall remaining tenor of Citigroup's debt portfolio, capital impact, as well as overall market conditions.
Beginning on the Redemption Date, the Depositary Shares representing the redeemed Preferred Stock will no longer be outstanding and dividends will no longer accrue on such securities.
Computershare Trust Company, N.A. ("Computershare") is the paying agent for the Depositary Shares. The paying agent's address is Computershare Trust Company, Attn: Corporate Actions, 150 Royall Street, Suite 101, Canton, MA 02021. Questions relating to the notice of redemption and related materials should be directed to Computershare via telephone at 1-888-250-3985.
For further information on the Preferred Stock and the related Depositary Shares, please see the prospectus at the following web address: https://www.citigroup.com/rcs/citigpa/storage/public/CitiDec121020PreferredStockSeriesW.pdf
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Media Contact:
Danielle Romero Apsilos
212 816 2264
danielle.romeroapsilos@citi.com
Fixed Income Investor Contact:
Peter Demoise
212 559 2718
peter.demoise@citi.com