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Citigroup Inc. on June 10 announced the successful remarketing of about $1.88 billion in aggregate principal amount of debt securities, representing the second of four series of debt securities required to be remarketed under the terms of Citi's Upper DECS Equity Units issued to Abu Dhabi, United Arab Emirates-based Abu Dhabi Investment Authority in December 2007.
Under the agreements governing the units, the interest rate on this second series of remarketed debt was reset to 6.000%. The remarketing will settle June 15.
The Abu Dhabi Investment Authority is obligated to purchase a total of 235.6 million shares of Citi common stock in four equal installments on March 15 and Sept. 15 as well as on March 15, 2011, and Sept. 15, 2011. The purchase price under the terms of the agreement is $31.83 per share or a total of $7.5 billion.
The proceeds from...