Citibank to price 20-year callable fixed-to-floating CMS spread notes

By Jennifer Chiou

New York, Aug. 7 - Citibank, NA plans to price callable fixed-to-floating CMS spread notes due Aug. 15, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a term sheet.

The interest rate is expected to be 9.25% for the first year. Beginning on Aug. 15, 2014, it will be 4 times the spread of the 30-year CMS rate minus the five-year CMS rate less 55 bps, subject to a minimum interest rate of zero and a maximum interest rate of 9.25% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning on Aug. 15, 2014, the notes will be callable at par on any interest payment date.

The notes (Cusip: 172986GQ8) are expected to price on Aug. 12 and settle on Aug. 15.

Citigroup Global Markets Inc. is the underwriter. Advisors Asset Management, Inc. is the distributor.

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