Citigroup Announces Full Redemption of Series S Preferred Stock and Partial Redemption of Series R Preferred Stock

Rhea-AI Summary

Citigroup is redeeming all $1.035 billion of its Series S Noncumulative Preferred Stock and 18,600 of its Series R Fixed Rate / Floating Rate Noncumulative Preferred Stock, totaling $465 million. The Series S redemption date is February 12, 2021, with a cash redemption price of $25 per share, while Series R will be redeemed on February 16, 2021, at $1,000 per share. These actions align with Citigroup's liability management strategy aimed at enhancing funding efficiency and capital structure. Dividends will cease accruing for redeemed shares.

Positive

• Redemption of $1.035 billion in Series S Preferred Stock enhances capital structure.
• Redemption of $465 million in Series R Preferred Stock indicates strong financial positioning.

Negative

• None.

Citigroup Inc. is redeeming, in whole, all $1.035 billion aggregate liquidation preference of Series S Depositary Shares representing interests in its 6.300% Noncumulative Preferred Stock, Series S (ticker “C PR S”) (the “Series S Preferred Stock”).

Citigroup is also redeeming 18,600 shares out of 60,000 shares outstanding of its 6.125% Fixed Rate / Floating Rate Noncumulative Preferred Stock, Series R (the “Series R Preferred Stock”), equivalent to $465 million out of an outstanding total of $1.5 billion aggregate liquidation preference of Series R Depositary Shares representing interests in its Series R Preferred Stock.

The redemption date for the Series S Preferred Stock and related Series S Depositary Shares is February 12, 2021 (the “Series S Redemption Date”). The cash redemption price, payable on February 12, 2021 for each Series S Depositary Share, will equal $25. Holders of record on a date to be declared by Citigroup’s board of directors prior to the Series S Redemption Date, will receive the regular quarterly dividend due on February 12, 2021 in an amount that will be declared prior to the Series S Redemption Date.

The redemption date for the Series R Preferred Stock and related Series R Depositary Shares is February 16, 2021 (the “Series R Redemption Date”). The cash redemption price, payable on February 16, 2021 for each Series R Depositary Share, will equal $1,000. Holders of record on a date to be declared by Citigroup’s board of directors prior to the Series R Redemption Date, will receive the regular quarterly dividend due on February 16, 2021 in an amount that will be declared prior to the Series R Redemption Date. The Series R Depositary Shares to be redeemed will be selected by lottery in accordance with the applicable procedures of The Depositary Trust Company.

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 Series S Redemption Date, the Series S Depositary Shares representing the redeemed Series S Preferred Stock will no longer be outstanding and dividends will no longer accrue on such securities.

Dividends on the Series R Depositary Shares representing the Series R Preferred Stock that are redeemed will cease to accrue beginning on the Series R Redemption Date. Series R Depositary Shares not selected for redemption will remain outstanding after the Series R Redemption Date and will continue to accrue dividends, when declared on the outstanding Series R Preferred Stock.

Computershare Trust Company, N.A. (“Computershare”) is the paying agent for the Series S 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 S Preferred Stock and the related Series S Depositary Shares, please see the prospectus at the following web address: https://www.citigroup.com/citi/fixedincome/data/FinalProspectusSupplement020216.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/20210113005716/en/

FAQ

What is the Series S redemption date for Citigroup's preferred stock?

The Series S redemption date is February 12, 2021.

How much is Citigroup redeeming from its Series R Fixed Rate / Floating Rate Noncumulative Preferred Stock?

Citigroup is redeeming $465 million of its Series R Preferred Stock.

What is the cash redemption price for Citigroup's Series S Depositary Shares?

The cash redemption price for Series S Depositary Shares is $25.

When will dividends cease for Series R Depositary Shares?

Dividends will cease to accrue beginning on February 16, 2021.

What strategy is Citigroup's redemption consistent with?

The redemptions are consistent with Citigroup's liability management strategy.