Citizens Financial Group announces pricing of note offerings

PROVIDENCE – Citizens Financial Group Inc. last week announced the pricing of two debt offerings: a CFG offering of $750 million aggregate principal amount of 4.3 percent subordinated notes due 2025, and a Citizens Bank N.A. offering of $750 million aggregate principal amount of 2.3 percent senior unsecured notes due 2018.
CFG intends to use the net proceeds of the subordinated notes offering to repurchase $750 million of existing CFG subordinated notes currently held by The Royal Bank of Scotland Group, pursuant to the previously announced agreement between CFG and RBS to reduce RBS’s ownership of CFG subordinated notes. Specifically CFG will retire, $333 million of CFG’s 4.771 percent subordinated notes due 2023, $334 million of CFG’s 4.691 percent subordinated notes due 2024 and $83 million of CFG’s 4.153 percent subordinated notes due 2024, all currently held by RBS.
Credit Suisse, RBS, Morgan Stanley and Citigroup are acting as joint bookrunning managers of the Subordinated Notes offering.
The bank senior notes, which will further diversify Citizens Bank NA’s funding sources, are being offered under the bank’s Global Bank Note Program. The bank intends to use the net proceeds of the bank senior notes offering for general corporate purposes.
Morgan Stanley, Credit Suisse, BofA Merrill Lynch, Barclays and Mizuho Securities are acting as bookrunners for the bank senior notes offering.