By Toni Weeks
San Luis Obispo, Calif., March 11 - Citigroup Inc. priced $11 million of callable leveraged CMS spread notes due March 12, 2034 linked to the 30-year Constant Maturity Swap Rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 10.5% for the first year. After that, it will be 4 times the spread of the 30-year CMS rate minus the two-year CMS rate minus 25 basis points, subject to a maximum interest rate of 10.5% per year and a minimum rate of 0%. Interest is payable quarterly.
The payout at maturity will be par.
Beginning on March 12, 2015, the notes will be callable at par on any interest payment date.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | Callable leveraged CMS spread notes
|
| Underlying rates: | 30-year Constant Maturity Swap and two-year CMS rate
|
| Amount: | $11 million
|
| Maturity: | March 12, 2034
|
| Coupon: | 10.5% for first year; beginning March 12, 2014, (a) 4 times (b) 30-year CMS rate minus five-year CMS rate minus 25 bps, subject to 10.5% cap and 0% floor; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from March 12, 2015 onward
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 3%
|
| Cusip: | 1730T0L64
|
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