RBS Reports Final Pricing Of Offering Of Shares In Citizens Financial

(RTTNews) - Royal Bank of Scotland Group Plc. (RBS, RBS.L) Wednesday announced the final pricing of the offering of shares in Citizens Financial Group, Inc. The offering comprised 86 million shares, or 16 percent, of Citizens common stock at a public offering price per share of $26.00.

The lender also granted a 15 percent over-allotment option, under which the underwriters have a 30-day option to purchase an additional 12.9 million shares at the public offering price, less the underwriting discount.

If the underwriters exercise this option in full, the total offering size, including the shares pursuant to the over-allotment option, would comprise 98.9 million shares, or 18.4 percent of Citizens common stock.

Gross proceeds realized will be $2.2 billion with the cash proceeds being used for general business purposes.

Citizens also intend to repurchase a further 9.6 million shares of its common stock from RBS at the offering price in a directed buy back.

Following the offering and the directed buy back, RBS will continue to hold up to 23.4 percent of Citizens' common stock, which are subject to a 60 day lock-up.

RBS will no longer consolidate Citizens in its financial statements, recognising an estimated 1.1 billion pounds gain upon deconsolidation.

RBS Chief Executive Officer Ross McEwan said, "This offering will leave us owning just over 20% of Citizens. We are now targeting to be able to exit Citizens fully by the end of 2015, a year ahead of the original deadline."