Citigroup plans contingent coupon autocallables linked to three stocks

By Angela McDaniels

Tacoma, Wash., June 15 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due June 21, 2017 linked to the worst performing of the common stocks of Johnson & Johnson, Cisco Systems, Inc. and Chevron Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annualized rate of 11.5% if the worst-performing stock closes at or above its barrier price, 75% of its initial share price, on the valuation date for that quarter.

The notes will be automatically called at par plus the contingent coupon if the worst-performing stock closes at or above its initial share price on any quarterly valuation date.

If the final share price of the worst-performing stock is greater than or equal to its barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock or, at the issuer’s option, an amount in cash equal to the value of those shares.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price June 16.

The Cusip number is 17298CCJ5.

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