New York – Citigroup Inc. is redeeming, in whole, all $96.8 million aggregate liquidation preference of Depositary Shares representing interests in its 8.125% Series AA Noncumulative Preferred Stock (ticker "C PR P") (the "Preferred Stock").
The redemption date for the Preferred Stock and related Depositary Shares is February 15, 2018. The cash redemption price, payable on February 15, 2018 for each Depositary Share, will equal $25. Holders of record on February 2, 2018 will receive the previously declared regular quarterly dividend of $0.5078125 due on February 15, 2018.
The redemption announced today is consistent with Citigroup's liability management strategy, and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Since 2015, Citigroup redeemed or retired $26.3 billion of its securities, 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.
Citigroup's Tier 1 Capital and Tier 1 Capital ratio will be substantially unaffected by the planned redemption. Citigroup's Tier 1 Capital and its Tier 1 Capital ratio are expected to decrease by approximately $96.8 million and 1 basis point, respectively. The redemption is consistent with Citigroup's capital actions submitted to the Federal Reserve Board as part of the 2017 Comprehensive Capital Analysis and Review.
Beginning on the redemption date, the Depositary Shares representing the redeemed Preferred Stock will no longer be outstanding and dividends will no longer accrue on such securities. Computershare Trust Company, N.A. ("Computershare") is the paying agent for the Depositary Shares. The paying agent's address is Computershare Trust Company, Attn: Corporate Actions, 250 Royall Street, Canton, MA 02021. Questions relating to the notice of redemption and related materials should be directed to Computershare via telephone at 1-855-396-2084.
For further information on the Preferred Stock and the related Depositary Shares, please see the prospectus at https://www.citigroup.com/rcs/citigpa/akpublic/storage/public/ps_080124saa.pdf.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi 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.
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