Citi eyes barrier securities with upside reset feature on Dow ETF

By Sarah Lizee

Olympia, Wash., April 22 – Citigroup Global Markets Holdings Inc. plans to sell 0% barrier securities with upside reset feature due April 29, 2025 linked to the SPDR Dow Jones industrial average ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Citigroup Inc.

The upside barrier value will be the initial underlying value unless a reset event has occurred, in which case the upside barrier value will be 85% to 90% of the initial underlying value. A reset event will occur if on any trading day until April 26, 2021, the underlier closes below 85% to 90% of the initial underlying value.

If the final underlying value is greater than the upside barrier value, the payout at maturity will be par plus the return of the underlier.

If the final underlying value is less than or equal to the upside barrier value but greater than or equal to the downside barrier value, 80% of the initial underlying value, the payout will be par.

If the final underlying value is less than the downside barrier value, investors will receive a fixed number of underlying shares of the underlying equal to the equity ratio, which is the stated principal amount divided by the initial underlying value. Investors may receive the cash value of those shares at the issuer’s option.

Citigroup Global Markets Inc. is the underwriter.

The notes (Cusip: 17324XYH7) will price on April 24.

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