Summary
Citigroup Inc. (C) filed an 8-K on May 28, 2024, announcing the establishment of a new series of preferred stock: the 7.125% Fixed Rate Reset Noncumulative Preferred Stock, Series CC. This filing establishes the terms and conditions for this new class of stock, which is a crucial step in its offering and potential issuance to investors. The establishment of this preferred stock series indicates Citigroup's ongoing capital management strategies and potential efforts to diversify its funding sources or meet regulatory capital requirements. Investors should note that this is a noncumulative preferred stock, meaning dividends, if not declared by the board, are not carried forward. The fixed rate reset feature implies that the dividend rate will be periodically adjusted based on market conditions.
Key Highlights
- 1Citigroup Inc. has established a new series of preferred stock: 7.125% Fixed Rate Reset Noncumulative Preferred Stock, Series CC.
- 2The establishment was formalized by filing a Certificate of Designations with the Delaware Secretary of State on May 28, 2024.
- 3This new preferred stock is noncumulative, meaning missed dividend payments are not accrued.
- 4The preferred stock features a 'Fixed Rate Reset' mechanism, suggesting its dividend rate will be subject to periodic adjustments.
- 5The filing also includes related exhibits such as an Underwriting Agreement, Deposit Agreement, and legal opinions, all pertaining to the issuance of Depositary Shares representing interests in this new preferred stock series.
- 6The effective date of the Certificate of Designations was immediately upon filing.