Citigroup Announces Full Redemption of Series Q Preferred Stock and Series R Preferred Stock

Rhea-AI Summary

Citigroup is redeeming all outstanding Series Q and Series R Depositary Shares, amounting to $1.25 billion and $1.035 billion respectively, on May 17, 2021. Holders will receive a cash redemption price of $1,000 per share and are eligible for quarterly dividends of $10.721875 for Series Q and $11.679375 for Series R, payable on the redemption date. This move aligns with Citigroup's strategy to enhance its funding and capital efficiency, influenced by various economic factors and market conditions.

Positive

• Redemption of Series Q and R Preferred Stock aligns with liability management strategy.
• Enhancement of funding and capital structure efficiency.

Negative

• None.

Citigroup Inc. is redeeming, in whole, all the currently outstanding $1.25 billion aggregate liquidation preference of Series Q Depositary Shares representing interests in its 5.950% Fixed Rate / Floating Rate Noncumulative Preferred Stock, Series Q (the “Series Q Preferred Stock”).

Citigroup is also redeeming, in whole, all the currently outstanding $1.035 billion aggregate liquidation preference of Series R Depositary Shares representing interests in its 6.125% Fixed Rate / Floating Rate Noncumulative Preferred Stock, Series R (the “Series R Preferred Stock”).

The redemption date for the Series Q Preferred Stock and related Series Q Depositary Shares and the Series R Preferred Stock and related Series R Depositary Shares is May 17, 2021 (the “Redemption Date”). The cash redemption price, payable on May 17, 2021, will equal $1,000 for each Series Q Depositary Share and Series R Depositary Share. Holders of record on May 7, 2021, will receive the previously declared regular quarterly dividend of $10.721875 per Series Q Depositary Share and $11.679375 per Series R Depositary Share, payable on May 17, 2021.

The redemptions announced today are 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 Series Q Depositary Shares and the Series R Depositary Shares 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 Series Q Depositary Shares and the Series R Depositary Shares. The paying agent’s address is Computershare Trust Company, Attn: Corporate Actions, 150 Royall Street, 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 Series Q Preferred Stock and the related Series Q Depositary Shares, please see the prospectus at the following web address: https://www.citigroup.com/citi/fixedincome/data/FinalProspectusSupplement081215.PDF

For further information on the Series R Preferred Stock and the related Series R Depositary Shares, please see the prospectus at the following web address: https://www.citigroup.com/citi/fixedincome/data/FinalProspectusSupplementSerR.pdf

Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup provides consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210416005369/en/

FAQ

What is Citigroup redeeming in May 2021?

Citigroup is redeeming all outstanding Series Q and Series R Depositary Shares.

What will be the cash redemption price for Series Q and R Depositary Shares?

The cash redemption price is $1,000 per share for both Series Q and R Depositary Shares.

When is the redemption date for Citigroup's Preferred Stock?

The redemption date is May 17, 2021.

What dividends will be paid on Series Q and R Preferred Stock?

Series Q will pay a dividend of $10.721875 and Series R will pay $11.679375, both payable on the redemption date.

How does the redemption affect holders of Series Q and R Depositary Shares?

Beginning on the redemption date, these shares will no longer be outstanding and dividends will not accrue.