Citigroup Inc. on Friday offered to buy back $1.1 billion worth of notes coming due later this year and in early 2011, in a move to reduce its interest payments.
The New York bank said the repurchase won't reduce its Tier 2 capital — a measure of its financial strength — because all of the debt is within one year of maturity. In February 2010, Citigroup completed the repurchase of $3.02 billion worth of senior debt.
The company is offering to buy back:
— 6.6 percent subordinated fixed-rate notes due Sept. 15.
— 7.25 percent subordinated notes due 2010.
— 6.5 percent subordinated fixed-rate notes due Dec. 1.
— 6.65 percent subordinated notes due Dec. 15.
— 6.49 percent subordinated notes due Jan. 11.
— 6.5 percent subordinated notes due Feb. 15 and
— Deutsche mark-demoninated 5.5 percent subordinated notes due June 30, 2010.
The bank said it will pay cash for any and all of the notes, with the offer expiring at 5 p.m. EDT on May 6. Its Citigroup Global Markets Inc. affiliate will serve as the dealer manager for the offers.
In morning trading, Citigroup shares added 5 cents to $4.92.
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