Citigroup to price ELKS linked to Chesapeake Energy stock

By Angela McDaniels

Seattle, Feb. 21 - Citigroup Funding Inc. plans to price an issue of one-year Equity LinKed Securities (ELKS) linked to the common stock of Chesapeake Energy Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to carry a coupon of between 8.5% and 9.5%. The exact coupon will be determined at pricing.

The payout at maturity will be par of $10 in cash unless Chesapeake Energy stock declines by 20% or more during the life of the ELKS, in which case the payout will be a number of Chesapeake Energy shares equal to $10 divided by the initial share price or, at the holder's option, the equivalent cash value.

Citigroup Global Markets Inc. will be the agent for the offering and will receive a commission of 2.25%.

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