Citi plans fixed, inverse floating range accrual notes tied to Russell

By Susanna Moon

Chicago, May 13 - Citigroup Inc. plans to price callable fixed-to-inverse floating range accrual notes due May 30, 2033 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be 8.25% for the first year. After that, it will accrue at a floating rate for each day that the index closes at or above the 70% barrier level. The floating rate will be 1.1 times 7.4% minus Libor, up to a maximum rate of 8.14%. Interest will be payable quarterly and cannot be less than zero.

Because the notes are inversely linked to Libor, the higher the Libor rate, the lower the contingent floating rate and related interest payment.

The payout at maturity will be par unless the index finishes at or below the 50% barrier level, in which case investors will share fully in losses.

The notes will be callable at par on any interest payment date after two years.

Citigroup Global Markets Inc. is the agent.

The notes will price on May 24.

The Cusip number is 1730T0TH2.

© 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.