Citigroup plans to price ELKS linked to Starbucks

By Angela McDaniels

Seattle, Jan. 19 - Citigroup Funding Inc. plans to price an issue of Equity LinKed Securities (ELKS) due 2008 linked to the common stock of Starbucks Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to pay between 8% and 9%. The exact coupon will be determined at pricing.

The payout at maturity will be par of $10.00 in cash unless Starbucks stock trades below the trigger price - expected to be about 77.5% of the initial share price - during the life of the notes, in which case the payout will be a number of Starbucks shares equal to $10.00 divided by the initial share price.

Citigroup has applied to list the securities under "ESK" on the American Stock Exchange.

Citigroup Global Markets Inc. will be the agent and will receive a fee of 2.25%.

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