Citigroup to redeem $1.49b in preferred shares for $25

Any quarterly dividend declared, but not paid prior, will be paid on or before the redemption date.

Citigroup has announced that it is redeeming all $1.495b aggregate liquidation preference of its Series K Depositary Shares, for a cash redemption price of $25.

The redemption date for the 6.875% Fixed Rate / Floating Rate Noncumulative Preferred Stock, Series K (ticker C Pr K) is set for 15 November 2023.

Any quarterly dividend declared but not paid prior to the redemption date will be paid on or before the redemption date, with schedule pending.

Citigroup said that the redemption is part of its “liability management strategy” and reflects efforts to enhance its funding and capital structure.

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“Citigroup’s redemptions are 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,” the bank said in a press release.

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.

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Computershare Trust Company, N.A. (Computershare) will serve as the paying agent for the depositary shares.