Citi Restarts Dividends on Preferred Securities

On February 27, 2009 Citi announced the suspension of dividends on its Preferred Stock. Pursuant to the exchange offers, Citi offered to exchange up to $14,923,650,000 of its outstanding publicly-held Preferred Securities for Common Stock at a price per share of $3.25; 98% of the Preferred Stock elected to participate in the exchange offers. Dividends declared today will be paid on the Series AA, T, E and F Preferred Stock that remains outstanding.

• 6.5% Non-Cumulative Convertible Preferred Stock, Series T, payable November 15, 2010, to holders of record on November 5, 2010. Holders of depositary receipts, each representing one-thousandth of a full convertible preferred share, will be paid $.8125 for each receipt held. (C-I)
• 8.125% Non-Cumulative Preferred Stock, Series AA,  payable November 15, 2010, to holders of record on November 5, 2010. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.5078125 for each receipt held.  (C-P)
• 8.40% Fixed Rate / Floating Rate Non-Cumulative Preferred Stock, Series E,payable November 1, 2010, to holders of record on October 20, 2010. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $42.00 for each receipt held.
• 8.50% Non-Cumulative Preferred Stock, Series F, payable December 15, 2010, to holders of record on December 3, 2010. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.53125 for each receipt held. (C-M)

C-P:  $25.57 +$1.47 (+6.10%)
C-M: $25.35 +$1.36 (+5.60%)
C-I:   $46.00 +$2.90 (+6.73%)

Why now, you ask?  Well, if they had deferred further, the preferred holders would be able to name representatives to the board

DISCLOSURE:  I am long Citi preferreds