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Exhibit 1.01
TERMS AGREEMENT
January 8, 2001
Citigroup Inc.
399 Park Avenue
New York, New York 10043
Attention: Chief Financial Officer
Ladies and Gentlemen:
We understand that Citigroup Inc., a Delaware corporation (the "Company"),
proposes to issue and sell $2,500,000,000 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 102.687% of the principal amount thereof, plus
accrued interest from December 6, 2000. The Securities form a part of the same
series as the Company's outstanding 6.75% Notes due 2005. The Closing Date shall
be January 16, 2001, at 8:30 A.M. at the office of Dewey Ballantine LLP located
at 1301 Avenue of the Americas, New York, New York 10019.
The Securities shall have the following terms:
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Title: ............................. 6.75% Notes due 2005
Maturity: .......................... December 1, 2005
Interest Rate: ..................... 6.75% per annum
Interest Payment Dates: ............ June 1 and December 1, commencing
June 1, 2001
Initial Price to Public: ........... 103.012% of the principal amount
thereof, plus accrued interest from
December 6, 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
January 8, 2001, to the Prospectus,
dated November 21, 2000.
Record Date: ....................... The May 15 or November 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. 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 "(333-49442), 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 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";
(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 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)";
(f) 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
(g) In the sixth line of Section 10, delete "65 East 55th Street, New
York, New York 10022," and insert in lieu thereof "399 Park Avenue, New York,
New York 10043."
The Company agrees to use its best efforts to have the Securities approved
for listing on the Luxembourg Stock Exchange.
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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 Act 1986, 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 Act 1986 (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;
(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).
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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, Meagher & Flom 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" does not purport to discuss all possible United States federal
income tax consequences of the purchase, ownership and disposition of the
Securities to 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 holders of the Securities.
John R. Dye, Esq., Associate General Counsel of the Company, is counsel
to the Company. Skadden, Arps, Slate, Meagher & Flom LLP is special tax
counsel to the Company. Dewey Ballantine LLP is counsel to the Underwriters.
Please accept this offer no later than 9:00 o'clock p.m. Eastern Standard
Time on January 8, 2001 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
January 8, 2001, to purchase the Securities on the terms set forth therein."
Very truly yours,
SALOMON SMITH BARNEY INC.
BANQUE BRUXELLES LAMBERT S.A.
BEAR, STEARNS & CO. INC.
CHASE SECURITIES INC.
CREDIT SUISSE FIRST BOSTON CORPORATION
FIRST UNION SECURITIES, INC.
GOLDMAN, SACHS & CO.
THE WILLIAMS CAPITAL GROUP, L.P.
By: SALOMON SMITH BARNEY INC.
By: /s/ J. Kenneth McPhail
------------------------------
Name: J. Kenneth McPhail
Title: Managing Director
ACCEPTED:
CITIGROUP INC.
By: /s/ Guy R. Whittaker
--------------------------------
Name: Guy R. Whittaker
Title: Treasurer
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ANNEX A
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NAME OF UNDERWRITER PRINCIPAL AMOUNT OF 2005 NOTES
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Salomon Smith Barney Inc. $2,237,500,000
Banque Bruxelles Lambert S.A. 37,500,000
Bear, Stearns & Co. Inc. 37,500,000
Chase Securities Inc. 37,500,000
Credit Suisse First Boston Corporation 37,500,000
First Union Securities, Inc. 37,500,000
Goldman, Sachs & Co. 37,500,000
The Williams Capital Group, L.P. 37,500,000
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TOTAL $2,500,000,000
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