Citigroup plans to price 20-year callable leveraged CMS spread notes

By Angela McDaniels

Tacoma, Wash., June 19 - Citigroup Inc. plans to price callable leveraged CMS spread notes due June 27, 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.

The interest rate is expected to be 9% for the first year. After that, it will be four times the modified CMS spread, subject to a minimum interest rate of zero and a maximum interest rate of 9% per year. The modified CMS spread will be the 30-year CMS rate minus the five-year CMS rate minus 15 basis points. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning June 27, 2015, the notes will be callable at par on any interest payment date.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to settle June 27.

The Cusip number is 1730T0TZ2.

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