Published on 6/1/2020 in the Prospect News Structured Products Daily.
New Issue: Citigroup sells $1.13 million autocallable equity-linked notes on fast food stocks
By Kiku Steinfeld
Chicago, June 1 – Citigroup Global Markets Holdings Inc. priced $1.13 million of autocallable equity-linked securities due June 1, 2022 tied to shares of Domino's Pizza, Inc., McDonald's Corp. and Wendy's Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
The notes carry a coupon of 10% per year, payable monthly.
The notes will be automatically redeemed at par plus interest if the worst-performing stock closes at or above its initial price on any monthly observation date after six months.
If the notes are not called and the final price of each stock is at least 50% of its initial price, the payout at maturity will be par. Otherwise, the payout will be a fixed number of shares of the worse performing stock equal to its equity ratio or, at the issuer’s option, the cash equivalent.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Global Markets Holdings Inc.
|
| Guarantor: | Citigroup Inc.
|
| Issue: | Autocallable equity-linked securities
|
| Underlying stocks: | Domino's Pizza, Inc., McDonald's Corp. and Wendy's Co.
|
| Amount: | $1,125,000
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| Maturity: | June 1, 2022
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| Coupon: | 10%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if each stock closes at or above downside threshold; otherwise, a fixed number of shares of the worse performing stock equal to its equity ratio or cash equivalent
|
| Call: | At par plus interest if worst-performing stock closes at or above initial price on any monthly observation date after six months
|
| Initial prices: | $373.97 for Domino’s, $187.972 for McDonald’s, $21.78 for Wendy’s
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| Downside thresholds: | $186.985 for Domino’s, $93.860 for McDonald’s, $10.890 for Wendy’s; 50% of initial prices
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| Equity ratios: | 2.67401 for Domino’s, 5.32708 for McDonald’s, 45.91368 for Wendy’s; equal to $1,000 divided by initial share price
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| Pricing date: | May 27
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| Settlement date: | May 29
|
| Underwriter: | Citigroup Global Markets Inc.
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| Fees: | 3.4%
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| Cusip: | 17328VU32
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