EXHIBIT 1.01
TERMS AGREEMENT
April 28, 2004
Citigroup Inc.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Treasurer
Ladies and Gentlemen:
We understand that Citigroup Inc., a Delaware corporation (the
"Company"), proposes to issue and sell $1,250,000,000 aggregate principal amount
of its debt securities (the "Securities"). Subject to the terms and conditions
set forth herein or incorporated by reference herein, we, Citigroup Global
Markets Inc., Bear, ▇▇▇▇▇▇▇ & Co. Inc., ▇▇▇▇▇▇ Brothers Inc., ▇▇▇▇▇▇▇ Lynch,
Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated, UBS Securities LLC, Barclays Capital Inc.,
BB&T Capital Markets, a division of ▇▇▇▇▇ & ▇▇▇▇▇▇▇▇▇▇▇▇, Inc., ▇▇▇▇▇▇ &
Company, ▇▇▇▇▇▇ ▇▇▇▇▇▇ & Company, Inc. and ▇▇▇▇▇ Capital Markets, Inc., 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 99.042% of the principal amount
thereof, plus accrued interest, if any, from the date of issuance. The Closing
Date shall be May 5, 2004, at 8:30 A.M. at the Corporate Law offices of the
Company located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇.
The Securities shall have the following terms:
Title: ............................ 5.125% Fixed Rate Global Senior Notes due
2014
Maturity: ......................... May 5, 2014
Interest Rate: .................... 5.125% per annum
Interest Payment Dates: ........... Semi-annually on May 5 and November 5,
commencing November 5, 2004
Initial Price to Public: .......... 99.467% of the principal amount thereof, plus
accrued interest, if any, from May 5, 2004
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 April 28, 2004, to the
Prospectus, dated July 23, 2003
Record Date: ...................... The April 15 and October 15 preceding each
Interest Payment Date
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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") or its
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 DTC, Euroclear Bank
S.A./N.V., as operator of the Euroclear System, and Clearstream International
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
"333-106598), 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 fourth line of 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 fourteenth line of the third paragraph of
Section 3, delete the word "definitive" and insert in lieu thereof
"global";
(e) in the fourth line of 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";
(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
(h) in the sixth line of Section 10, delete "65 ▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇" and insert in lieu thereof "399 ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇"
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The Company agrees to use its best efforts to have the
Securities approved for listing on the Luxembourg Stock Exchange and to maintain
such listing so long as any of the Securities are outstanding, provided, however
that:
(a) if it is impracticable or unduly burdensome, in the
good faith determination of the Company, to maintain such listing due
to changes in listing requirements occurring after the date of the
Prospectus Supplement, or
(b) if the Transparency Directive (as defined in the
Prospectus Supplement) is adopted and is implemented in Luxembourg in a
manner that would require the Company to publish financial information
according to accounting principles or standards that are materially
different from United States generally accepted accounting principles,
the Company may de-list the Securities from the Luxembourg Stock Exchange and
shall use its reasonable best efforts to obtain an alternative admission to
listing, trading and/or quotation of the Securities by another listing
authority, exchange or system within or outside the European Union as it may
decide. If such an alternative admission is not available or is, in the
Company's opinion, unduly burdensome, such an alternative admission will not be
obtained, and the Company shall have no further obligation in respect of any
listing, trading or quotation for the Securities.
The Company further agrees and hereby represents that it has
been informed of the guidance relating to stabilization provided by the
Financial Services Authority, in particular in the section MAR 2 Annex 2G of the
Financial Services Handbook, and has not taken or omitted to take any action and
will not take any action or omit to take any action (such as issuing any press
release relating to any Securities without the Stabilization/FSA legend) which
may result in the loss by any of the Underwriters of the ability to rely on any
stabilization safe harbor provided by the Financial Services Authority under the
Financial Services and Markets ▇▇▇ ▇▇▇▇.
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 Securities, 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 which have not resulted and
will not result in an offer to the public in the United Kingdom for
purposes of the Public Offers of Securities Regulations 1995;
(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
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with the issue or sale of the Securities in circumstances in which
Section 21(1) of FSMA does not apply the Company;
(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 represents that it has undertaken not to engage in a 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 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;
(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), and unless
permitted to do so under the securities laws of Hong Kong, no person
has issued or had in its possession for the purposes of issue, and will
not issue or have in its possession for the purpose of issue, any
advertisement, document or invitation relating to the Securities other
than with respect to the Securities to be disposed of to persons
outside Hong Kong or only to persons whose business involves the
acquisition, disposal or holding of securities, whether as principal or
agent; and
(h) it acknowledges that the Securities may not be
offered, sold, transferred or delivered in or from The Netherlands as
part of their initial distribution or at any time thereafter directly
or indirectly, other than to individuals or legal entities (which
include, but are not limited to, banks, brokers, dealers or finance
companies which are subject to adequate supervision), institutional
investors, insurance companies, pension funds, central governments and
large public international organizations and large undertakings
(through their treasury department) which are listed on a sufficiently
regulated stock exchange, who or which regularly trade or invest in
securities in the conduct of a business or a profession for their own
account, all within the meaning of the Securities Transactions
Supervision Act 1995 (Wet Toezicht Effectenverkeer 1995).
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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., General Counsel -- Capital Markets of the
Company, is counsel to the Company. Skadden, Arps, Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP is
special U.S. tax counsel to the Company. Cleary, Gottlieb, ▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ is
counsel to the Underwriters.
Please accept this offer no later than 9:00 p.m. Eastern Time
on April 28, 2004 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 April 28,
2004, to purchase the Securities on the terms set forth therein."
Very truly yours,
CITIGROUP GLOBAL MARKETS INC.,
on behalf of the Underwriters named herein
By: /s/ G. ▇▇▇▇▇ ▇▇▇▇, ▇▇.
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Name: G. ▇▇▇▇▇ ▇▇▇▇, ▇▇.
Title: Vice President
ACCEPTED:
CITIGROUP INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Title: Assistant Treasurer
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ANNEX A
NAME OF UNDERWRITER PRINCIPAL AMOUNT OF SECURITIES
-------------------------------------------------- ------------------------------
Citigroup Global Markets Inc. $1,062,500,000
Bear, ▇▇▇▇▇▇▇ & Co. Inc 31,250,000
▇▇▇▇▇▇ Brothers Inc. 31,250,000
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated 31,250,000
UBS Securities LLC 31,250,000
Barclays Capital Inc. 12,500,000
BB&T Capital Markets, a division of 12,500,000
▇▇▇▇▇ & ▇▇▇▇▇▇▇▇▇▇▇▇, Inc.
▇▇▇▇▇▇ & Company 12,500,000
▇▇▇▇▇▇ ▇▇▇▇▇▇ & Company, Inc. 12,500,000
▇▇▇▇▇ Capital Markets, Inc. 12,500,000
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TOTAL $1,250,000,000
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