Citizens Financial Group Announces Expiration and Expiration Date Results of its Private Exchange Offers for Five Series of Subordinated Notes

Rhea-AI Summary

Citizens Financial Group, Inc. (CFG) announced the results of its Exchange Offers for five series of subordinated notes, which expired on February 9, 2021. The transaction involves the exchange of Old Notes for New Notes, including three series of fixed-rate reset subordinated notes due 2031. The expected issuance includes approximately $134.6 million of the 4.300% notes, alongside $68.7 million of 3.750% notes and $60.5 million of 4.350% notes. Citizens will not receive cash proceeds from this offer. Settlement is anticipated to occur on February 11, 2021.

Positive

• Successful completion of Exchange Offers for various subordinated notes.
• Expected issuance of approximately $134.6 million in new fixed-rate reset subordinated notes, enhancing capital structure.

Negative

• None.

Citizens Financial Group, Inc. (“Citizens”) (NYSE: CFG) today announced the expiration and expiration date results of its previously announced offers to exchange five series of its outstanding subordinated notes.

Exchange Offers

The transaction consists of five concurrent, but separate, private offers to exchange (the “Exchange Offers”) any and all of Citizens’ outstanding series of subordinated notes under “Title of Series of Old Notes” described in the table below (collectively, the “Old Notes”) for (i) one of three new series of subordinated notes set forth opposite the applicable series of Old Notes under “Title of Series of New Notes” in the table below (collectively, the “New Notes”) and (ii) solely with respect to the 4.300% Subordinated Notes due 2025, an additional cash payment, in each case, on the terms and subject to the conditions set forth in the Offering Memorandum dated January 12, 2021 (the “Offering Memorandum” and, together with the accompanying eligibility certification, the “Exchange Offer Documents”).

Description of the Old Notes
CUSIP Number		Title of Series of Old Notes		Principal Amount of Old Notes Outstanding		Title of Series of New Notes		Principal Amount of Old Notes Tendered by the Expiration Date and Expected to be Accepted
75524RAA7 / U7535RAA4		4.150% Subordinated Notes due 2022		$181,927,000		4.300% Fixed Rate Reset Subordinated Notes due 2031		$ 13,450,000
174610AL9		3.750% Subordinated Notes due 2024		$158,629,000		3.750% Fixed Rate Reset Subordinated Notes due 2031		$ 68,710,000
174610AC9		4.023% Subordinated Notes due 2024		$ 25,200,000		4.300% Fixed Rate Reset Subordinated Notes due 2031		$ 8,500,000
174610AJ4		4.350% Subordinated Notes due 2025		$194,016,000		4.350% Fixed Rate Reset Subordinated Notes due 2031		$ 60,547,000
174610AK1		4.300% Subordinated Notes due 2025		$450,162,000		4.300% Fixed Rate Reset Subordinated Notes due 2031		$113,880,000

The Exchange Offers expired at 11:59 p.m. (Eastern time) on February 9, 2021 (the “Expiration Date”). The “Settlement Date” with respect to the Exchange Offers will be promptly following the Expiration Date and is expected to be February 11, 2021.

Upon the terms and subject to the conditions set forth in the Exchange Offer Documents, Citizens expects that it will issue approximately (i) $134,632,000 aggregate principal amount of its 4.300% Fixed Rate Reset Subordinated Notes due 2031, (ii) $68,710,000 aggregate principal amount of its 3.750% Fixed Rate Reset Subordinated Notes due 2031 and (iii) $60,547,000 aggregate principal amount of its 4.350% Fixed Rate Reset Subordinated Notes due 2031, in each case, as part of the aggregate Total Consideration (as defined in the Offering Memorandum) for the Old Notes expected to be accepted in the Exchange Offers. The balance of the aggregate Total Consideration with respect to the 4.300% Subordinated Notes due 2025 will be paid in cash. Citizens will not receive any cash proceeds from the Exchange Offers. The actual aggregate principal amount of each series of New Notes that will be issued on the Settlement Date is subject to change based on final validation of tenders.

In addition to the applicable Total Consideration (as defined in the Offering Memorandum), Eligible Holders (as defined below) whose Old Notes are accepted for exchange will be paid accrued and unpaid interest on such Old Notes to, but not including, the Settlement Date. Interest will cease to accrue on the Settlement Date for all Old Notes accepted.

If and when issued, the New Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws. Therefore, the New Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. Citizens will enter into a registration rights agreement with respect to each series of New Notes.

Only holders who had duly completed and returned an eligibility certification certifying that they were either (1) “qualified institutional buyers” as defined in Rule 144A under the Securities Act (“QIBs”) or (2) non-“U.S. persons” (as defined in Rule 902 under the Securities Act) that (a) are located outside of the United States, (b) are not acquiring New Notes for the account or benefit of a U.S. Person, and (c) are Non-U.S. Qualified Offerees (as defined in the Offering Memorandum) were authorized to receive the Offering Memorandum and to participate in the Exchange Offers (each, an “Eligible Holder”).

Global Bondholder Services Corporation is acting as the Information Agent and the Exchange Agent for the Exchange Offers. Questions or requests for assistance related to the Exchange Offers or for additional copies of the Exchange Offer Documents may be directed to Global Bondholder Services Corporation at (866) 470-3800 (toll free) or (212) 430-3774 (collect). You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Exchange Offers. The Exchange Offer Documents can be accessed at the following link http://gbsc-usa.com/eligibility/Citizens.

Credit Suisse (USA) LLC is acting as the Lead Dealer Manager (the “Lead Dealer Manager”) and Barclays Capital Inc., BofA Securities, Inc. and Citizens Capital Markets, Inc. are acting as the Co-Dealer Managers (the “Co-Dealer Managers” and, together with the Lead Dealer Manager, the “Dealer Managers”) for the Exchange Offers. Questions or requests for assistance related to the terms of the Exchange Offers may be directed to the Lead Dealer Manager at (800) 820-1653 (toll free) or (212) 325-2476 (collect).

This press release is for informational purposes only and does not constitute an offer to purchase, or a solicitation of an offer to sell, any Old Notes, and does not constitute an offer to sell, or a solicitation of an offer to purchase, any New Notes. The Exchange Offers are being made solely pursuant to the Offering Memorandum and related documents. The Exchange Offers are not being made to holders of Old Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Exchange Offers to be made by a licensed broker or dealer, the Exchange Offers will be deemed to be made on behalf of Citizens by the Dealer Managers or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

This communication is not a prospectus for the purposes of the Prospectus Regulation. The expression “Prospectus Regulation” means Regulation (EU) 2017/1129, as amended, and includes any relevant implementing measure in any member state (“Member State”) of the European Economic Area (the “EEA”) which has implemented the Prospectus Regulation.

PROHIBITION OF OFFERS TO EEA RETAIL INVESTORS. The New Notes are not intended to be offered or otherwise made available to and should not be offered or otherwise made available to any retail investor in the EEA. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU, as amended (“MiFID II”); (ii) a customer within the meaning of Directive (EU) 2016/97, as amended (the “Insurance Distribution Directive”), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the Prospectus Regulation. Consequently, no key information document required by Regulation (EU) No 1286/2014, as amended (the “PRIIPs Regulation”), for offering the New Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering of the New Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

PROHIBITION OF SALES TO UK RETAIL INVESTORS. The New Notes are not intended to be offered or otherwise made available to and should not be offered or otherwise made available to any retail investor in the UK. For these purposes: the expression “retail investor” means a person who is one (or more) of the following: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the EUWA; or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 (“FSMA”) and any rules or regulations made under the FSMA to implement the Insurance Distribution Directive, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of the Prospectus Regulation as it forms part of domestic law by virtue of the EUWA. Consequently, no key information document required by the PRIIPs Regulation as it forms part of domestic law by virtue of the EUWA (the “UK PRIIPs Regulation”) for offering or selling the New Notes or otherwise making them available to retail investors in the UK has been prepared and therefore offering or selling the New Notes or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs Regulation.

In the United Kingdom, this press release is being distributed only to, and is directed only at qualified investors within the meaning of Article 2(e) of the Prospectus Regulation as it forms a part of domestic law by virtue of the EUWA who are (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), and/ or (ii) high net worth companies (or persons to whom it may otherwise be lawfully communicated) falling within Article 49(2)(a) to (d) of the Order, which persons together we refer to in this press release as “relevant persons.” Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. This press release must not be acted on or relied on in the United Kingdom by persons who are not relevant persons. In the United Kingdom, any investment or investment activity to which this press release relates is only available to, and will be engaged in with, relevant persons only.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $183.3 billion in assets as of December 31, 2020. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a 24/7 customer contact center and the convenience of approximately 2,700 ATMs and approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.

Forward-Looking Statements

This communication contains “forward-looking statements” — that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Statements with respect to the Exchange Offers are forward-looking statements, based on our current expectations for the transactions, and are subject to the risk that the transactions may not be completed in a timely manner or at all, and that the final terms of the transactions may differ, possibly materially, from those described in this press release due to future events. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to update publicly these forward-looking statements to reflect new information, future events or otherwise.

CFG-IR

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FAQ

What are the details of Citizens Financial Group's Exchange Offers?

Citizens Financial Group's Exchange Offers involved exchanging five series of subordinated notes for new series, expiring on February 9, 2021, with a settlement date anticipated on February 11, 2021.

What new notes will be issued after the Exchange Offers by CFG?

Citizens expects to issue approximately $134.6 million of 4.300% notes, $68.7 million of 3.750% notes, and $60.5 million of 4.350% notes due in 2031 as part of the Exchange Offers.

When is the settlement date for CFG's Exchange Offers?

The settlement date for Citizens Financial Group's Exchange Offers is expected to be February 11, 2021.

Will Citizens Financial Group receive cash from the Exchange Offers?

No, Citizens Financial Group will not receive any cash proceeds from the Exchange Offers.