GO
Loading...

Pisani: Citi Announces Terms of Trust Preferred Offering

Citigroup did (finally!) announce the terms of its trust preferred offering: $2 billion (80 million shares), par $25, at a yield of 8.5 percent.

The surprise here is the yield: 8.5 percent, less than the 8.875 percent that traders had been told last night. Demand was much stronger than expected, resulting in a lower yield than initially telegraphed.

This is good news for banks who may also need to raise capital.

Remember, many regional banks like Fifth Third, SunTrust, Zions, and KeyCorp have yet to repay their TARP funds.

Ability to raise capital is key to repayment, which is one reason we have seen these regional banks rise in the last two days.

_____________________________
Financials - More News & Analysis:

_____________________________
The Bears' Take:

_____________________________
The WaMu Mystery:

Feature: Why WaMu Stock Soared - It's a 'Cheap Lottery Ticket'

WaMu shares now:

_____________________________
CNBC Data Pages:

_____________________________

_____________________________

Questions? Comments? tradertalk@cnbc.com

Symbol
Price
 
Change
%Change
C
---
FITB
---
KEY
---
STI
---
ZION
---

Featured

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street