New York – Citigroup Inc. has announced the full redemption of all $1.5 billion in aggregate liquidation preference of its Series U Depositary Shares, which represent interests in the 5.000% Fixed Rate / Floating Rate Noncumulative Preferred Stock, Series U (the “Preferred Stock”).
The redemption will occur on September 12, 2024 (the “Redemption Date”). Each Depositary Share will be redeemed at a cash price of $1,000. Additionally, holders of record as of August 30, 2024, will receive the previously declared semi-annual dividend of $25.00 per Depositary Share, payable on the Redemption Date.
This redemption aligns with Citigroup’s liability management strategy, reflecting the company’s ongoing efforts to optimize its funding and capital structure. Citigroup considers various factors when making redemption decisions, including economic value, regulatory changes, impact on net interest margin and borrowing costs, the remaining tenor of its debt portfolio, capital impact, and overall market conditions.
As of the Redemption Date, the Depositary Shares representing the redeemed Preferred Stock will no longer be outstanding, and dividends will cease to accrue on these securities.
