Citigroup plans 8.75%-10.75% single observation ELKS linked to Valero

By Marisa Wong

Madison, Wis., May 6 - Citigroup Inc. plans to price 8.75% to 10.75% single observation Equity Linked Securities due Nov. 21, 2013 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly. The exact interest rate will be set at pricing.

If the final share price is at least 80% of the initial share price, the payout at maturity will be par of $10. If the final share price is less than 80% of the initial share price, the payout will be a number of Valero shares equal to $10 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price May 17 and settle three business days after that.

The Cusip number is 173095563.

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