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Citigroup Inc | Citigroup Capital XIV 6.875% Enhanced Trust Preferred Securities (C.PRO)

This preferred is marked as having been called.
Prospectus exerpt:  Citigroup Capital’s only source of cash to make payments on the capital securities are payments on the junior subordinated debt securities it purchases from Citigroup.

If you purchase the capital securities, you are entitled to receive cumulative cash distributions at an annual rate of 6.875% of the liquidation amount of $25 per capital security. Distributions will accumulate from the date Citigroup Capital issues the capital securities and will be paid quarterly in arrears on March 30, June 30, September 30, and December 30 of each year, beginning September 30, 2006.

If Citigroup defers interest payments on the junior subordinated debt securities, Citigroup Capital will defer distributions on the capital securities. A deferral may extend for up to 40 consecutive quarterly periods (10 years) without causing an event of default and acceleration on the junior subordinated debt securities . A deferral of distributions cannot extend, however, beyond the maturity date of June 30, 2066.

During any period in which Citigroup defers interest on the junior subordinated debt securities, which we refer to as an extension period, except as described on page 31-32, Citigroup will not be permitted to: pay a dividend or make any distributions on its capital stock or redeem, purchase, acquire or make a liquidation payment on any of its capital stock, or make any guarantee payments relating to the foregoing; or make an interest, principal or premium payment on, or repurchase or redeem, any of its debt securities or guarantees that rank equal with or junior to the junior subordinated debt securities.

Through the fifth anniversary of the commencement of an extension period, Citigroup may pay deferred interest without regard to the source of funds. Thereafter, Citigroup may only use the net proceeds from the sale by it or by any of its subsidiaries of shares of its common stock and/or qualified preferred stock, which we refer to as the new equity amount, to pay deferred interest on the junior subordinated debt securities, provided that the use of other sources of funds to pay interest payments would not, by itself, be an event of default and acceleration under the indenture that would permit the trust or the holders of capital securities to accelerate the junior subordinated debt securities.

Notwithstanding the above, after the fifth anniversary of the commencement of an extension period, if a market disruption event or a supervisory event (each as defined herein) has occurred and is continuing or if Citigroup has previously sold stock up to the share cap amount (as defined herein) and Citigroup has not increased the share cap amount, Citigroup may pay deferred interest with cash from any source, but Citigroup is not obligated to do so. Additionally, at maturity of the junior subordinated debt securities, or in the case of an event of default and acceleration under the indenture, Citigroup may pay accrued and unpaid interest without regard to the source of funds. See “Description of the Junior Subordinated Debt Securities — Settlement of Deferred Interest with Proceeds of Equity Sale” on page 33 for further details, including the definition of “new equity amount,” “market disruption event” and “supervisory event.”

If an extension period continues beyond the fifth anniversary of the commencement thereof, Citigroup will thereafter be obligated to continuously use its commercially reasonable efforts to sell shares of its common stock and, as promptly as practicable after such sale, to apply the net proceeds from such sale to pay deferred interest on the junior subordinated debt securities until all deferred interest is paid in full, provided, however that a violation by Citigroup of its obligation to do so would not, by itself, be an event of default and acceleration under the indenture that would permit the trust or the holders of capital securities to accelerate the junior subordinated debt securities. Citigroup is not permitted to sell shares in an amount in excess of the share cap amount. The “share cap amount” will initially equal 55 million shares of Citigroup’s common stock. Citigroup may, at its discretion, increase the share cap amount (including through the increase of Citigroup’s authorized share capital, if necessary) if Citigroup determines that such increase is necessary to allow it to sell sufficient shares to satisfy Citigroup’s obligations to pay deferred interest.

Notwithstanding the above, Citigroup has no obligation to sell shares of its common stock during a market disruption event and has no obligation either to sell shares of its common stock or to apply the net proceeds of such sale to pay deferred interest during a supervisory event. In either case, Citigroup may, at its option, choose to pay deferred interest using cash from any source, but Citigroup is not obligated to do so. See “Description of the Junior Subordinated Debt Securities — Settlement of Deferred Interest with Proceeds of Equity Sale” on page 33.

Citigroup has no obligation, under any circumstances, to sell qualified preferred stock or to apply the proceeds of such sale to pay deferred interest, but may do so, at its option.

Full Prospectus PDF », C Page »

Redeemable?:Yes
Call Date:6/30/2011 (Now Trading Post Call Date)
Maturity Date:6/30/2066
Cumulative?:Yes
Shares Offered:20,000,000
Overallotment:3,000,000
Liquidation Preference:$25
Original Coupon:6.875%
Pay Period:Quarterly
Pay Dates:30-Mar, 30-Jun, 30-Sep, 30-Dec
Citigroup is a financial services holding company whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. Co. operates in two primary business segments: Citicorp, consisting of Co.'s Global Consumer Banking businesses and Institutional Clients Group; and Citi Holdings, consisting of businesses and portfolios of assets that Co. has determined are not central to its core Citicorp businesses. As of Dec 31 2013, Co. had total assets of $1.88 trillion and total deposits of $968.27 billion.

Preferreds: C.PRW, C.PRE, C.PRG, C.PRH, C.PRM, C.PRO, C.PRP, C.PRQ, C.PRR, C.PRS, C.PRU, C.PRV, C.PRZ, C.PRF.CL, C.PRI, C.PRN, C.PRC, C.PRJ, C.PRK, C.PRL


Open the C Information Page »
Name:  Citigroup Inc
Website:  www.citigroup.com
Sector:  Banking & Savings
Number of ETFs Holding C:  97 (see which ones)
Total Market Value Held by ETFs:  $5,234,087,480.92
Total Market Capitalization:  $151,980,000,000
% of Market Cap. Held by ETFs:  3.44%

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