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Exhibit 1.01
TERMS AGREEMENT
November 30, 2000
Citigroup Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Chief Financial Officer
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, 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 98.766% of the principal amount thereof, plus
accrued interest from October 11, 2000. The Securities form a part of the same
series as the Company's outstanding 7.250% Subordinated Notes due 2010 issued on
October 11, 2000. The Closing Date shall be December 5, 2000, at 8:30 A.M. at
the office of Xxxxx Xxxxxxxxxx LLP located at 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx
Xxxx, Xxx Xxxx 00000.
The Securities shall have the following terms:
Title: ................................. 7.250% Subordinated Notes due 2010
Maturity: .............................. October 1, 2010
Interest Rate: ......................... 7.250 % per annum
Interest Payment Dates: ................ April 1 and October 1, commencing April 1, 2001
Initial Price to Public: ............... 99.216% of the principal amount thereof, plus
accrued interest from October 11, 2000
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
November 30, 2000, to the Prospectus, dated
November 21, 2000.
Record Date: ........................... The March 15 or September 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"), 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. All provisions of
Article Eleven 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 and Travelers Group Inc.
shall refer to Citigroup Inc.;
(b) In the thirteenth line of the first paragraph, delete "March 15,
1987, between Primerica Corporation, a New Jersey corporation formerly known as
American Can Company ("old Primerica"), and The Bank of New York, as trustee
(such trustee or such other trustee as may be named for the Securities, being
hereinafter referred to as the "Trustee"), as amended by the First Supplemental
Indenture dated as of December 15, 1988, among old Primerica, Primerica
Holdings, Inc., a Delaware corporation ("Holdings") and the Trustee, the Second
Supplemental Indenture dated as of January 31, 1991 between Holdings and the
Trustee, and the Third Supplemental Indenture dated as of December 9, 1992 among
the Company, Holdings and the Trustee" and insert in lieu thereof "July 17,
1998, between Travelers Group Inc., a Delaware corporation, and Bank One Trust
Company, N.A. (formerly, The First National Bank of Chicago), as trustee (such
trustee or such other trustee as may be named for the Securities, being
hereinafter referred to as the "Trustee"), as amended by the First Supplemental
Indenture dated as of December 15, 1998 between Citigroup Inc. and the Trustee,
and the Second Supplemental Indenture dated as of January 21, 1999 between
Citigroup Inc. and the Trustee";
(c) In the second line of Section 2(a), delete "(33-55542), including a
prospectus" and insert in lieu thereof "(333-49442), including a prospectus
(which prospectus also relates to $4,535,500,468 aggregate principal amount of
securities of the Company previously registered on a registration statement on
Form S-3 (333-37992) (the "Predecessor Registration Statement") and in each case
not issued)" and any reference in the Basic Provisions to the "Registration
Statement" shall be deemed to be a reference to such registration statements on
Form S-3;
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(d) In the fifth line of the third paragraph of Section 3, delete the
phrase "New York Clearing House (next day)" and insert in lieu thereof "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 (except that in the case of
the Predecessor Registration Statement, only at its effective date)";
(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 (except that
in the case of the Predecessor Registration Statement, only at its effective
date)"; and
(h) In the sixth line of Section 10, delete "65 Xxxx 00xx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000," and insert in lieu thereof "399 Xxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx 00000."
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, 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 within the meaning of the Public
Offers of Securities Regulations 1995;
(b) it has complied and will comply with all applicable provisions of
the Financial Services Xxx 0000, with respect to anything done by it in relation
to the Securities in, from or otherwise involving the United Kingdom;
(c) it has only issued or passed on and will only issue or pass on in
the United Kingdom any document received by it in connection with the issue of
the Securities to a person who is of a kind described in Article 11(3) of the
Financial Services Xxx 0000 (Investment Advertisements) (Exemptions) Order 1996,
as amended, or is a person to whom the document may otherwise lawfully be issued
or passed on;
(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;
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(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
(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, Xxxxxxx and Xxxx LLP, special 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.
Xxxx X. Xxx, Esq., Associate General Counsel of the Company, is counsel
to the Company. Skadden, Arps, Slate, Xxxxxxx and Xxxx LLP is special tax
counsel to the Company. Xxxxx Xxxxxxxxxx LLP is counsel to the Underwriters.
Please accept this offer no later than 9:00 o'clock p.m. Eastern
Standard Time on November 30, 2000 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 November
30, 2000, to purchase the Securities on the terms set forth therein."
Very truly yours,
XXXXXXX XXXXX XXXXXX INC.
ABN AMRO INCORPORATED
BANC OF AMERICA SECURITIES LLC
BANC ONE CAPITAL MARKETS, INC.
CHASE SECURITIES INC.
XXXXXX XXXXXXX & CO., INC.
THE XXXXXXXX CAPITAL GROUP, L.P.
By: XXXXXXX XXXXX XXXXXX INC.
By:
Name: Xxxxxxx X. Xxxxxx
Title: Director
ACCEPTED:
CITIGROUP INC.
By:
Name: Xxxxxxx X. Xxxxxxxxx
Title: Assistant Treasurer
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ANNEX A
NAME OF UNDERWRITER PRINCIPAL AMOUNT OF 2010 NOTES
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Xxxxxxx Xxxxx Barney Inc. $1,100,000,000
ABN AMRO Incorporated 25,000,000
Banc of America Securities LLC 25,000,000
Banc One Capital Markets, Inc. 25,000,000
Chase Securities Inc. 25,000,000
Xxxxxx Xxxxxxx & Co., Inc. 25,000,000
The Xxxxxxxx Capital Group, L.P. 25,000,000
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TOTAL $1,250,000,000
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