Citigroup plans issue of Elks exchangeable for Apple

By Jennifer Chiou

New York, May 23 - Citigroup Funding Inc. plans to price an issue of Elks (equity-linked securities) linked to Apple Computer, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

At maturity, investors will receive par in cash unless Apple stock trades below a trigger price - expected to be 72.5% of the initial price - during the life of the notes. If the trigger is hit, the payout will be a number of Apple shares equal to 10 divided by the initial share price.

Citigroup Global Markets Inc. will be calculation agent.

Citigroup said it will apply to list the notes under "EYA" on the American Stock Exchange.

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