Cleary Gottlieb is representing the underwriters, led by Citigroup, in three offerings totaling $5.25 billion.
Citi issued $1.5 billion of 2.450 percent senior notes due 2020, $1 billion of 3-year global floating rate senior notes, and $2.75 billion of 3.887 percent fixed rate/floating rate callable senior notes due 2028.
This is the first offering of senior debt by a U.S. global systemically important bank holding company (GSIB) since the December 31, 2016, grandfathering deadline set in the Federal Reserve’s final Total Loss-Absorbing Capacity (TLAC) rule.
The final TLAC rule released on December 15, 2016, retained the Federal Reserve’s prohibition of acceleration rights for events of default except for non-payment or certain bankruptcy events. On December 29, 2016, Citi’s existing senior debt documentation was amended to eliminate the impermissible acceleration rights while retaining existing covenants.