Citigroup plans to price 8%-11% ELKS linked to Dow Chemical stock

By Jennifer Chiou

New York, Nov. 4 - Citigroup Funding Inc. plans to price Equity LinKed Securities due 13 months after issue linked to the common stock of Dow Chemical Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a coupon of 8% to 11%, with the exact rate to be set at pricing. Interest will be paid semiannually.

If Dow Chemical stock declines by 35% or more during the life of the notes, the payout at maturity will be a number of Dow Chemical shares equal to par of $10 divided by the initial share price or, at each holder's option, the value of those shares in cash. Otherwise, the payout will be par.

The ELKS will price in November and settle three days later.

Citigroup Global Markets Inc. is the underwriter.

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