Citigroup to price 20-year callable leveraged CMS spread notes

By Toni Weeks

San Luis Obispo, Calif., Nov. 8 - Citigroup Inc. plans to price callable leveraged CMS spread notes due Nov. 26, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be fixed at 10% for the first year. After that, it will be 4.5 times the spread of the 30-year CMS rate minus the five-year CMS rate, up to a maximum interest rate of 10%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning Nov. 26, 2015.

The notes (Cusip: 1730T0C56) are expected to price Nov. 21.

Citigroup Global Markets Inc. is the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.