October 3, 2010
Treasury Announces Sales of Citigroup Securities
Treasury recently announced that it priced a secondary offering of all Citigroup trust preferred securities (TruPS®) received pursuant to the Asset Guarantee Program (AGP). The aggregate gross proceeds from the offering, all of which represent a net gain or profit to the taxpayer under the AGP, will be $2.246 billion. The closing of the TruPS® sale is expected to occur on Tuesday, October 5, 2010.
Treasury also announced the sale of 1.5 billion shares of Citigroup common stock pursuant to the completion of its third trading plan with Morgan Stanley as sales agent. To date, Treasury has sold approximately 4.1 billion shares of Citigroup common stock for gross proceeds of approximately $16.4 billion. Treasury currently owns approximately 3.6 billion shares of Citigroup common stock, representing 12.4% ownership of the outstanding common stock. Treasury expects to continue selling its shares in the market in an orderly fashion, after the blackout period set by Citigroup related to its third quarter earnings release ends.
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