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Citigroup Capital XVI, 6.45% Enhanced TruPS Trust Preferred Securities
Ticker Symbol: C-W* CUSIP: 17310L201 Exchange: NYSE
* NOTE: This security is no longer trading as of 7/15/2013
Security has been Called for: Monday, July 15, 2013
Citigroup Inc. is announcing the redemption, in whole, of its 6.450% Enhanced TRUPS® issued by Citigroup Capital XVI CUSIP:17310L201). The redemption date for the Redeemed TRUPS® is July 15, 2013. The cash redemption price payable for each Redeemed TRUPS® on the redemption date will equal $25 plus $0.0671875 in accumulated and unpaid distributions. This redemption reflects Citigroup’s ongoing efforts to enhance the efficiency of its funding and capital structure. Since the beginning of 2012 and including the redemption announced today, Citigroup has retired $23.6 billion of senior debt, subordinated debt, preferred and trust preferred securities, reducing Citigroup’s overall funding costs and efficiently deploying its ample liquidity. The redemption announced today is consistent with Citi’s liability management strategy, and reflects Citi’s strategy of continuing to optimize the capital structure under Basel III. Citigroup will continue to consider opportunities to redeem or repurchase its senior debt, subordinated debt, preferred and trust preferred 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, as well as overall market conditions. Citigroup’s Tier 1 Common capital and related Tier 1 Common ratio, either under Basel I or as estimated under Basel III, will not be affected by the planned redemption. Citigroup’s Basel I Tier 1 Capital and its Basel 1 Tier 1 Capital ratio are expected to decrease by approximately $0.95B and 9 basis points, respectively. The Redeemed TRUPS® are being redeemed, along with the common securities issued by Citigroup Capital XVI and held by Citigroup, as a result of the concurrent redemption in whole by Citigroup of the junior subordinated debt securities held by Capital XVI which underlie the Redeemed TRUPS®. Beginning on the redemption date, the Redeemed TRUPS® will no longer be considered outstanding and distributions will no longer accrue on such securities. The Bank of New York Mellon is the paying agent for the Redeemed TRUPS®. ____________ This security is possibly subject to an early call as a result of the occurrence of a regulatory capital event (see prospectus for further information) stemming from the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act which no longer allows the company to include the funds originating from this security as Tier 1 capital on their balance sheet. ____________ On May 7, 2009, Citi announced it will increase the aggregate liquidation value of publicly held preferred stock and trust preferred securities it is offering to exchange for common stock to approximately $20.5 billion, from $15 billion as originally announced on February 27, 2009. All other terms of the offers, including the exchange factors and acceptance priority levels, remain unchanged. Additional information about the terms of the expanded exchange offers is provided below. Citi will offer to acquire any and all issued and outstanding depositary shares representing shares of its Series F, Series AA, Series T and Series E preferred stock. Subject to the terms and conditions of the exchange offers and assuming 100% participation by holders of depositary shares representing these series of preferred stock, Citi will accept for purchase approximately $14.9 billion aggregate liquidation value of preferred stock, which would leave approximately $5.6 billion in aggregate liquidation value available to accept trust preferred securities for purchase.
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QUANTUMONLINE.COM SECURITY DESCRIPTION: Citigroup Capital XVI, 6.45% Enhanced TruPS (Enhanced Trust Preferred Secuirities), liquidation amount $25 per share, guaranteed by Citigroup Inc. (NYSE: C) (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee), redeemable at the issuer's option on or after 12/31/2011 at $25 per share plus accrued and unpaid dividends, and maturing 12/31/2066. Cumulative distributions of 6.45% ($1.6125) per annum are paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record one business day prior to the payment date while the securities remain in book-entry form. Dividends paid by trust preferred securities are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The company has the right, at any time, to defer dividend payments for up to five consecutive years before the alternative payment mechanism of selling common shares to pay dividends takes effect and up to 40 consecutive quanters without giving rise to an event of default (but not beyond the maturity date). The trust's assets consist of the 6.45% Junior Subordinated Deferrable Interest Debentures due 12/31/2066 which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.
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Go to Parent Company's Record (C)
IPO - 11/17/2006 - 60.00 Million Shares @ $25.00/share.
Link to IPO Prospectus
Previous Ticker Symbol: CXVIP Changed: 11/29/2006
Market Value $1.5 Billion
Company's Online Information Links
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Company's Online SEC EDGAR Filings |
Company's Email Address Links |
Address and Phone Numbers |
Address: 399 Park Avenue, New York, NY 10043 |
Main Phone Number |
212-559-1000 |
Fax Number |
212-793-3946 |
Investor Contact
John Andrews
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212-559-2718
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Toll Free Phone Number |
877-936-2737 |
CEO - Vikram Pandit |
CFO - John C. Gerspach |
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