By Angela McDaniels
Tacoma, Wash., Dec. 11 - Citigroup Inc. said $3,957,250 principal amount of its 0% C-Tracks exchange-traded notes due Sept. 28, 2023 linked to the Miller/Howard MLP Fundamental index are outstanding and held by the public as of Dec. 9.
The issuer filed an amended and restated pricing supplement to register the offer and sale of the C-Tracks on a new registration statement but is not issuing additional C-Tracks at this time, according to a 424B2 filing with the Securities and Exchange Commission.
The company has registered to sell up to $250 million of the notes and will sell the additional notes from time to time at varying prices. It sold $25 million on the inception date, Sept. 25.
The index is designed to measure the performance of 25 energy master limited partnerships selected quarterly by a methodology that is based on certain quantitative fundamental factors of publicly traded MLPs, including distribution growth, estimated capital expenditures and distribution coverage.
Each quarter, the notes will pay a coupon amount equal to the accrued distribution amount, which is based on the ordinary cash distributions that a hypothetical holder of the index constituents would have been entitled to receive during the relevant period, reduced by the accrued investor fee.
The payout at maturity will be an amount equal to the closing indicative value of the C-Tracks adjusted down by any final coupon amount due at maturity.
On any day, the closing indicative value equals (i) the current value of the C-Tracks on that day plus (ii) the accrued distribution amount on that day minus (iii) the accrued investor fee on that day.
The current value was $25 on the pricing date. On subsequent days, it equals the current value on the immediately preceding day multiplied by the daily return factor, which equals the closing level of the index on that day divided by the closing level on the preceding day.
The accrued investor fee was zero on the pricing date. On each subsequent day, it is an annualized amount equal to the accrued investor fee on the preceding day plus 0.95% of the closing indicative value on the previous day.
The notes are putable at any time, subject to a minimum of 50,000 notes and a 0.1% redemption charge. The notes are callable beginning Sept. 25, 2014. The payout will be equal to the closing indicative value.
The notes are listed on NYSE Arca under the symbol "MLPC."
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | C-Tracks exchange-traded notes
|
| Underlying index: | Miller/Howard MLP Fundamental index
|
| Amount: | Up to $250 million
|
| Maturity: | Sept. 28, 2023
|
| Coupon: | Amount equal to accrued distribution amount, which is based on ordinary cash distributions that hypothetical holder of index constituents would have been entitled to receive during relevant period, reduced by accrued investor fee; payable quarterly
|
| Face amount: | $25
|
| Payout at maturity: | Cash amount equal to final closing indicative value, adjusted down by any final coupon amount due at maturity
|
| Call option: | Beginning Sept. 25, 2014
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| Put option: | At any time, subject to minimum of 50,000 C-Tracks and 0.1% redemption charge
|
| Inception date: | Sept. 25
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| Settlement date: | Sept. 30 (for original $25 million)
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| Underwriter: | Citigroup Global Markets Inc.
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| Fees: | No underwriting discount; underwriter is entitled to receive accrued investor fee and any redemption charge
|
| Listing: | NYSE Arca: MLPC
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| Cusip: | 17321F201
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