Cleary Gottlieb represented the underwriters, led by Citigroup Global Markets Inc., in a registered offering of 1.5 million depositary shares, each representing a 0.25 interest in a share of 4% fixed-rate reset noncumulative perpetual preferred stock, Series W ($25,000 liquidation preference per share).
The offering priced on December 3, 2020, and will close on December 10, 2020.
Instead of the initial fixed dividend rate of 4% transitioning from a fixed rate to a floating rate on the first call date, the dividend payment calculation for the preferred stock will reset to a new fixed rate on December 10, 2025, and every five years after that date. The new fixed rate will be calculated based on the five-year treasury rate three days prior to each reset date. This is the first time Citigroup has issued a fixed-rate reset instrument.
Citigroup Inc., a global diversified financial services holding company, provides a broad range of financial products and services to consumers, corporations, governments, and institutions. Citigroup has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions.