Citigroup Inc. announced the pricing of 5.4 billion common shares and 35 million tangible equity units as part of agreement with the U.S. government and its regulators to repay U.S. taxpayers for $20 billion government holds in TARP trust preferred securities and to terminate loss-sharing agreement with the government. The common stock priced at $3.15 per share, generating net proceeds of approximately $17 billion. Tangible equity units priced at $100 each, generating net proceeds of approximately $3.5 billion (about $2.8 billion counted as equity.) Upon completion of the offerings and the repayment of the $20 billion of the TARP trust preferred securities and the termination of the loss-sharing agreement, Citi will no longer be deemed to be recipient of exceptional financial assistance under TARP. The U.S. Treasury (UST) announced it would extend its lock-up period on the sale of its 7.7 billion share common equity stake to 90 days from 45 days after the completion of this offering. The tangible equity units are comprised of prepaid stock purchase contract and junior subordinated amortizing note. Each stock purchase contract has settlement date of December 15, 2012 and will settle for between 25.3968 and 31.7460 shares of Citi common stock, The amortizing notes will pay holders equal quarterly installments of $1.875 per amortizing note, which in the aggregate will be equivalent to 7.50% cash payment per year with respect to each $100 stated amount of tangible equity units.
From the last technical analysis on Citigroup, the result showed it was trending down (12/14/2009) and no up trend signals. The summary was to keep waiting for a few more days. Let us review on the stock price base on technical analysis today (12/31/2009).
Citigroup - 3 months
There was some up trend in the signal on 12/31/2009. Current support level was ~USD3.2; resistance was ~USD3.44 for the past 2 weeks. Could it be any consolidation before a breakout trend? Dear investor, are you in or out?
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