Exhibit 1.01
TERMS AGREEMENT
July 18, 2002
Citigroup Inc.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Treasurer
Ladies and Gentlemen:
We understand that Citigroup Inc., a Delaware corporation (the "Company"),
proposes to issue and sell $2,000,000,000 aggregate principal amount of its debt
securities (the "Securities"). Subject to the terms and conditions set forth
herein or incorporated by reference herein, we, as underwriters (the
"Underwriters"), offer to purchase, severally and not jointly, the principal
amount of the Securities set forth opposite our respective names on the list
attached as Annex A hereto at 99.875% of the principal amount thereof, plus
accrued interest, if any from the date of issuance. The Closing Date shall be
July 26, 2002, at 8:30 A.M. at the Corporate Law offices of Citigroup Inc.
located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.
The Securities shall have the following terms:
Title: ............................. Floating Rate Notes due 2004
Maturity: .......................... July 26, 2004
Interest Rate: ..................... Three-month LIBOR (Telerate) plus 0.10%,
determined as set forth in the
Prospectus Supplement, dated July 18,
2002, to the Prospectus, dated March 30,
2001.
Interest Payment Dates: ............ Quarterly on the 26th of January, April,
July and October, commencing October
28th, 2002.
Initial Price to Public: ........... 100.00% of the principal amount thereof,
plus accrued interest, if any, from the
date of issuance.
Redemption Provisions: ............. The Securities are not redeemable by the
Company prior to maturity, except upon
the occurrence of certain events
involving United States taxation, as set
forth in the Prospectus Supplement,
dated July 18, 2002, to the Prospectus,
dated March 30, 2001.
Record Date: ....................... The business day preceding each Interest
Payment Date.
Additional Terms:
The Securities shall be issuable as Registered Securities only. The
Securities will be initially represented by one or more global Securities
registered in the name of The Depository Trust Company ("DTC"), the Euroclear
System and Clearstream Banking, societe anonyme, or their respective nominees,
as described in the Prospectus Supplement relating to the Securities. Beneficial
interests in the Securities will be shown on, and transfers thereof will be
effected only through, records maintained by such entities and their respective
participants. Owners of beneficial interests in the Securities will be entitled
to physical delivery of Securities in certificated form only under the limited
circumstances described in the Prospectus Supplement. Principal and interest on
the Securities shall be payable in United States dollars. The provisions of
Sections 11.03 and 11.04 of the Indenture relating to defeasance shall apply to
the Securities.
All the provisions contained in the document entitled "Primerica
Corporation -- Debt Securities -- Underwriting Agreement -- Basic Provisions"
and dated January 12, 1993 (the "Basic Provisions"), a copy of which you have
previously received, are, except as indicated below, herein incorporated by
reference in their entirety and shall be deemed to be a part of this Terms
Agreement to the same extent as if the Basic Provisions had been set forth in
full herein. Terms defined in the Basic Provisions are used herein as therein
defined.
Basic Provisions varied with respect to this Terms Agreement:
(a) all references to Primerica Corporation shall refer to Citigroup Inc.;
(b)in the second line of Section 2(a), delete "(33-55542), including a
prospectus" and insert in lieu thereof "(333-57364), including a prospectus"
and any reference in the Basic Provisions to the "Registration Statement"
shall be deemed to be a reference to such registration statement on Form S-3;
(c)in the third paragraph of Section 3, delete the phrase "certified or
official bank check or checks in New York Clearing House (next day)" and
insert in lieu thereof "wire transfer of federal or other same day";
(d)in the fifth paragraph of Section 3, delete the phrase "certified or
official bank check in New York Clearing House (next day)" and insert in lieu
thereof "wire transfer of federal or other same day"
(e) in the fourteenth line of the third paragraph of Section 3, delete the
word "definitive" and insert in lieu thereof "global";
(f)in the ninth line of Section 6(a), delete "such registration statement
when it became effective, or in the Registration Statement," and insert in
lieu thereof "the Registration Statement";
(g)in the eighth line of Section 6(b), delete "in any part of such
registration statement when it became effective, or in the Registration
Statement," and insert in lieu thereof "the Registration Statement"; and
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(h)in the sixth line of Section 10, delete "65 ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇▇ ▇▇▇▇ ▇▇▇▇▇," and insert in lieu thereof "399 ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇ ▇▇▇▇▇."
The Company agrees to use its best efforts to have the Securities approved
for listing on the Luxembourg Stock Exchange.
The Underwriters hereby agree in connection with the underwriting of the
Securities to comply with the requirements set forth in any applicable sections
of Rule 2720 of the Conduct Rules of the National Association of Securities
Dealers, Inc.
Each Underwriter further agrees and hereby represents that:
(a)it has not offered or sold, and, prior to the expiration of the period
of six months from the Closing Date for the issuance of the notes, will not
offer or sell any Securities to persons in the United Kingdom, except to
those persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments, as principal or agent, for the purposes
of their businesses or otherwise in circumstances that do not constitute an
offer to the public in the United Kingdom for purposes of the Public Offers
of Securities Regulations 1995, as amended (the "Regulations");
(b)it has complied and will comply with all applicable provisions of the
Financial Services and Markets ▇▇▇ ▇▇▇▇ ("FSMA") with respect to anything
done by it in relation to the Securities in, from or otherwise involving the
United Kingdom;
(c)it has only communicated or caused to be communicated and it will only
communicate or cause to be communicated an invitation or inducement to engage
in investment activity (within the meaning of Section 21 of FSMA) received by
it in connection with the issue or sale of the notes in circumstances in
which Section 21(1) of FSMA does not apply to Citigroup;
(d)it will not offer or sell any Securities directly or indirectly in
Japan or to, or for the benefit of, any Japanese person or to others, for
re-offering or re-sale directly or indirectly in Japan or to any Japanese
person except under circumstances which will result in compliance with all
applicable laws, regulations and guidelines promulgated by the relevant
governmental and regulatory authorities in effect at the relevant time. For
purposes of this paragraph, "Japanese person" means any person resident in
Japan, including any corporation or other entity organized under the laws of
Japan;
(e)it is aware of the fact that no German selling prospectus
(Verkaufsprospekt) has been or will be published in respect of the sale of
the Securities and that it will comply with the Securities Selling Prospectus
Act (the "SSPA") of the Federal Republic of Germany
(Wertpapier-Verkaufsprospektgesetz). In particular, each underwriter has
undertaken not to engage in public offering (offentliche Anbieten) in the
Federal Republic of Germany with respect to any Securities otherwise than in
accordance with the SSPA and any other act replacing or supplementing the
SSPA and all the other applicable laws and regulations;
(f)the Securities are being issued and sold outside the Republic of France
and that, in connection with their initial distribution, it has not offered
or sold and will not offer or sell, directly or indirectly, any Securities to
the public in the Republic of France, and that it has not distributed and
will not distribute or cause to be distributed to the public in the Republic
of France the Prospectus Supplement, the Prospectus or any other offering
material relating to the Securities; and
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(g)it and each of its affiliates has not offered or sold, and it will not
offer or sell, the Securities by means of any document to persons in Hong
Kong other than persons whose ordinary business it is to buy or sell shares
or debentures, whether as principal or agent, or otherwise in circumstances
which do not constitute an offer to the public within the meaning of the Hong
Kong Companies Ordinance (Chapter 32 of the Laws of Hong Kong).
In addition to the legal opinions required by Sections 5(c) and 5(d) of
the Basic Provisions, the Underwriters shall have received an opinion of
Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP, special U.S. tax counsel to the
Company, dated the Closing Date, to the effect that although the discussion set
forth in the Prospectus Supplement under the heading "United States Federal
Income Tax Considerations For Non-United States Holders" does not purport to
discuss all possible United States federal income tax consequences of the
purchase, ownership and disposition of the Securities to non-United States
holders of the Securities, such discussion constitutes, in all material
respects, a fair and accurate summary of the United States federal income tax
consequences of the purchase, ownership and disposition of the Securities to
non-United States holders of the Securities.
▇▇▇▇ ▇. ▇▇▇, Esq., Associate General Counsel of the Company, is counsel
to the Company. Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP is special U.S. tax
counsel to the Company. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ LLP is counsel to the Underwriters.
Please accept this offer no later than 9:00 p.m. Eastern Time on July 18,
2002 by signing a copy of this Terms Agreement in the space set forth below and
returning the signed copy to us, or by sending us a written acceptance in the
following form:
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"We hereby accept your offer, set forth in the Terms Agreement, dated July
18, 2002, to purchase the Securities on the terms set forth therein."
Very truly yours,
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ INC.
BANC ONE CAPITAL MARKETS, INC.
▇.▇. ▇▇▇▇▇▇ SECURITIES INC.
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇
INCORPORATED
BANC OF AMERICA SECURITIES LLC
BEAR, ▇▇▇▇▇▇▇ & CO. INC.
▇▇▇▇▇▇▇▇ & PARTNERS, L.P.
FLEET SECURITIES, INC.
▇▇▇▇▇▇ BROTHERS INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & CO., INC.
SANTANDER CENTRAL HISPANO INVESTMENT
SECURITIES INC.
UBS WARBURG LLC
By: ▇▇▇▇▇▇▇ ▇▇▇▇▇ BARNEY INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
ACCEPTED:
CITIGROUP INC.
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Name: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Title: Treasurer
ANNEX A
NAME OF UNDERWRITER PRINCIPAL AMOUNT OF 2004 NOTES
------------------- ------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc. $1,690,000,000
Banc One Capital Markets, Inc. 50,000,000
▇.▇. ▇▇▇▇▇▇ Securities Inc. 50,000,000
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated 50,000,000
Banc of America Securities LLC 20,000,000
Bear, ▇▇▇▇▇▇▇ & Co. Inc. 20,000,000
▇▇▇▇▇▇▇▇ & Partners, L.P. 20,000,000
Fleet Securities, Inc. 20,000,000
▇▇▇▇▇▇ Brothers Inc. 20,000,000
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co., Inc. 20,000,000
Santander Central Hispano Investment Securities Inc. 20,000,000
UBS Warburg LLC 20,000,000
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TOTAL $2,000,000,000
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