Skip to main content

Citadel Sells $500M Of Those Medium Term Notes

  • Author:
  • Updated:

Well. That certainly didn't take long. Citadel sold the first batch of notes on its debt offering, pulling in $500 million, according to a source cited by Bloomberg. Damn it must feel good to be Ken Griffin.

Citadel Investment Group LLC, the hedge fund controlled by Kenneth Griffin, sold $500 million of five-year notes today in the first-ever sale of bonds by a hedge fund, according to a person familiar with the transaction.
The fund sold the notes at a yield of 1.90 percentage points more than similar-maturity Treasuries, said the person, who declined to be identified because the sale is private. The average yield premium, or spread, on similarly rated notes is 1.22 percentage points, according to data compiled by Merrill Lynch & Co.
The sale by Chicago-based Citadel may allow it to rely less on financing from Wall Street investment banks. The bonds will be sold through a medium-term note program.