By Angela McDaniels
Seattle, Aug. 24 - Citigroup Funding Inc. priced a $51.09 million issue of Equity LinKed Securities (ELKS) due March 6, 2008 linked to the common stock of Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay 6.27% at maturity for an annualized rate of 12%.
The payout at maturity, in addition to interest, will be par of $10 unless Caterpillar stock falls by 17.5% or more during the life of the notes, in which case the payout will be a number of Caterpillar shares equal to $10 divided by the initial share price or, at the holder's option, the equivalent cash value.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Equity LinKed Securities (ELKS)
|
| Underlying stock: | Caterpillar Inc. (NYSE: CAT)
|
| Amount: | $51.09 million
|
| Maturity: | March 6, 2008
|
| Coupon: | 12%, payable at maturity
|
| Price: | Par of $10
|
| Payout at maturity: | If Caterpillar stock falls below the trigger price during the life of the notes, 0.13303 of Caterpillar share or the equivalent cash value; otherwise, par
|
| Initial share price: | $75.17
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| Trigger price: | $62.02, 82.5% of the initial share price
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 28
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 1.25%
|
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