Citicorp announces final call of Series 15 Preferred Stock.NEW YORK--(BUSINESS WIRE)--October 11, 1995--Citicorp announced today that it will give notice tomorrow of the final redemption on November 13, 1995 of the remaining 22.9 million depositary shares of the company s Conversion Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , Series 15 (commonly called PERCS PERCS Provincial Emergency Radio Communications Service PERCS Productive, Easy-To-Use, Reliable Computing Systems PERCS Preference Equity Redemption Cumulative Stock PERCS Problem Evaluation and Reporting Control System PERCS Programmable Easy-to-Use Reliable Computing System ). The depositary shares, each representing one-twelfth of one share, are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CCIprP. (After the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. the PERCS will cease to be outstanding.) For each depositary share called for redemption, the holder will receive 0.279435 of a share of Citicorp s common stock plus an amount in cash equal to accrued and unpaid dividends. This represents the call price of $20.28 per depositary share, payable in common stock at $72.575 per common share, in accordance with the PERCS provisions, based on the average of the closing prices for Citicorp common stock for October 4-6 and 9-10. Citicorp will have issued approximately 6.4 million shares of common stock for this redemption. The company noted that conversion of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. will have no effect on either primary or fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of since depositary shares are included in these computations as common stock equivalents. Citicorp stated that the final redemption of the PERCS concludes a transaction in which the company will issue a total of 27.5 common shares in the conversion. The original 76.9 million PERCS shares, issued in October 1992, raised more than $1.1 billion of capital. Depositary shares should be submitted as follows: If by hand, to Citibank, N.A., Corporate Trust Services, 5th floor, 111 Wall Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York; If by mail, to Citibank, N.A., Corporate Trust Services, Sort 3573, New York, NY 10043. -0- Note: PERCS is the trademark of Morgan Stanley & Co. Incorporated, as is Preferred Equity Redemption Cumulative Stock, in connection with its investment banking services. CONTACT: Investor contact: Frederick A. Roesch (212) 559-2715 Press contact: John M. Morris (212) 559-4285 |
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