Citigroup plans autocallable contingent coupon notes on Amazon.com

By Toni Weeks

San Luis Obispo, Calif., Feb. 8 - Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Sept. 4, 2014 linked to Amazon.com, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay an annualized coupon of 7% to 9% each quarter if the closing price of Amazon.com shares is equal to or greater than the downside threshold price, 80% of the initial share price. Otherwise, holders will not receive the contingent interest payment for that quarter.

The notes will be automatically called at par plus the contingent coupon if the closing price of the underlying shares on any of the first five quarterly valuation dates is greater than or equal to the initial share price.

If the notes are not automatically called, the payout at maturity will be par plus the contingent coupon if the final share price is greater than or equal to the downside threshold price. If the final share price is less than the downside threshold price, investors will receive a number of shares equal to the principal amount of notes divided by the initial share price or the cash value of those shares.

The notes (Cusip: 1730T0RV3) are expected to price Feb. 27 and settle three business days later.

Citigroup Global Markets Inc. is the underwriter.

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