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Citigroup Announces Redemption of Trust Preferred Securities Issued by Citigroup Capital XX

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Citigroup (Investor's Business Daily)

Citigroup Inc. is announcing the redemption of a series of Citi trust preferred securities – the 7.875% Enhanced TRUPS® issued by Citigroup Capital XX (CUSIP: 173085200) (the “ETRUPS®”). The ETRUPS® are being redeemed, along with the common securities issued by Citigroup Capital XX and held by Citi, as a result of the concurrent redemption in whole by Citi of the junior subordinated debt securities held by Citigroup Capital XX which underlie the ETRUPS®.

The redemption date for the ETRUPS® will be December 17, 2012, and the cash redemption price paid on the redemption date will equal $25 plus $0.503125 in accumulated and unpaid distributions per ETRUPS®.

Beginning on the redemption date, the ETRUPS® will no longer be considered outstanding and distributions will no longer accrue on the ETRUPS®.

Under the terms and conditions of the ETRUPS® Citigroup has the option to redeem the ETRUPS® in whole or in part on one or more occasions any time on or after December 15, 2012. Accordingly, Citi has elected to redeem the ETRUPS® in whole on December 17, 2012. As a result of this redemption, Citigroup's Basel I Tier 1 Capital is expected to decrease by approximately $0.45B and its Basel I Tier 1 Capital ratio is expected to decrease by approximately 4.6 basis points. Citigroup's Tier 1 Common capital and related Tier 1 Common ratio, under Basel I and as estimated under Basel III, will not be affected by this redemption.

Posted-In: News Financing

 

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