Citigroup Global Markets commenced a cash tender offer for certificates issued by Citibank Omni-S Master Trust, formerly Sears Credit Account Master Trust II, for $4.2 billion of certificates outstanding, according to data from Merrill Lynch.

"We believe the offered prices should ensure a successful tender," wrote Theresa O'Neill, ABS strategist with Merrill Lynch. As part of the offer, which has some classes bid at $1,040 per every $1,000, investors could receive 0.5 to 1 point more than they would have received in a regular transaction. O'Neill noted the levels are particularly attractive for a private label portfolio, since they tend to trade at a concession to bank card portfolios.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.