Magazine article American Banker

Citicorp's London Finance Arm Issues $250 Million in 12-Year Euronotes

Magazine article American Banker

Citicorp's London Finance Arm Issues $250 Million in 12-Year Euronotes

Article excerpt

The London Finance subsidiary of Citicorp on Tuesday issued $250 million in 12-year floating rate Euronotes that will bear interest at the average of the London interbank bid and offered rates. The notes are guaranteed on a subordinated basis by Citicorp.

According to First Boston-Credit Suisse Ltd., which is comanaging the underwriting group, the notes are structured to let investors take advantage of the difference between one-week and three-month interbank rates, which has averaged 57 basis points since 1975.

The notes will mature in August 1996. While the interest rate will be fixed weekly, the notes will pay interest quarterly. The issuer, Citicorp Overseas Finance Capital N.V., can call the notes at par value, but investors do not have the option of redeeming the notes early.

Citicorp International Bank Ltd. is also a comanager of the underwriting group.

First Pennsylvania Corp., Philadelphia, on Tuesday concluded its exchange offer of convertible depositary preferred shares for an outstanding issue of convertible subordinated debentures due 1993.

According to a First Pennsylvania statement, each depositary share represents ownership of one-quarter share of the corporation's $10.50 cumulative preferred stock, Series C.

The company said it tendered about $32 million in principal amount of the outstanding debentures, or 53% of the original $60 million principal amount, through its exchange offer. Thus, the company issued about 959,500 convertible depositary preferred shares to the tendering debenture holders.

First Pennsylvania also issued 30 convertible depositary preferred shares with a market value of $618.75 for each $1,000 principal amount of debentures tendered. …

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