Citigroup Inc. today announced the commencement of offers to purchase for cash certain of its notes of the series set forth in the table below up to an aggregate principal amount with respect to each series of notes (each, a "Maximum Series Tender Cap"). The offer to purchase each series of Notes is referred to as an "Offer" and all such offers are referred to collectively as the "Offers." The Notes had an aggregate principal amount outstanding of approximately U.S. $7.5 billion as of July 15, 2014.
These Offers, currently totaling up to approximately U.S. $2 billion aggregate principal amounts of the Notes, are consistent with Citigroup's liability management strategy, and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure. Since 2013, Citigroup redeemed or retired U.S. $17.7 billion of securities, excluding exchanged securities, of which U.S. $5.4 billion was redeemed or retired in 2014, reducing Citigroup's overall funding costs. Citigroup will continue to consider opportunities to redeem or repurchase securities, based on several factors, including without limitation, the economic value, 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.
The Offers are being made pursuant to the offer to purchase, dated July 16, 2014 (the "Offer to Purchase," as may be amended or supplemented from time to time), and the related letter of transmittal (the "Letter of Transmittal," as may be amended or supplemented from time to time) which set forth in more detail the terms and conditions of the Offers.
The Offers will expire at 11:59 p.m., New York City time, on August 12, 2014, unless extended or earlier terminated (such date and time, as the same may be extended with respect to the Offers, the "Expiration Date"). Subject to the terms and conditions set forth in the Offer to Purchase and the Letter of Transmittal, Holders of Notes that are validly tendered on or prior to 5 p.m., New York City time, on July 29, 2014, unless extended (such date and time with respect to an Offer, as the same may be extended with respect to such Offer, the "Early Tender Date") and accepted for purchase shall be entitled to receive the total consideration calculated in the manner set forth in the Offer to Purchase (the "Total Consideration"), which includes an early tender premium in the amount indicated in the table above (the "Early Tender Premium").