Citigroup Inc. sold $1.875 billion of five-year senior debt as part of terms for a cash injection from Abu Dhabi Investment Authority in 2007, according to data compiled by Bloomberg.
The 6.01 percent notes priced to yield 350 basis points more than similar-maturity U.S. Treasuries, Bloomberg data show. A person familiar with the transaction earlier said the debt might pay a spread of about 325 basis points. A basis point is 0.01 percentage point.
Abu Dhabi Investment received equity units in New York- based Citigroup in exchange for $7.5 billion in cash. The units, which included junior-ranking debt securities, require Citigroup to remarket the subordinated securities and use the proceeds to buy Citigroup common stock in four equal installments starting next March, according to a November 2007 statement from the bank.
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