By Marisa Wong
Madison, Wis., April 3 - Citigroup Inc. increased the maximum amount of 0% C-Tracks exchange-traded notes due Nov. 12, 2020 linked to the Citi Volatility Index Total Return that it can sell to $4 billion from $1.95 billion, according to a 424B2 filing with the Securities and Exchange Commission.
The maximum amount was increased from $950 million in February.
The issuer filed an amended and restated pricing supplement to register the offer and sale of additional C-Tracks but is not issuing additional C-Tracks at this time.
The company sold $20 million of the notes on their inception date, Nov. 12, 2010, and $1,624,032,000 principal amount of notes were outstanding and held by the public as of April 2.
On Jan. 2, 2013, a 1-for-10 reverse split increased the face amount of the notes to $1,000 from $100.
The payout at maturity or upon redemption will be an amount equal to the closing indicative value of the C-Tracks.
The adjusted closing indicative value was $1,000 at inception. On each subsequent day, it equals the closing indicative value on the previous day plus the index return for that day minus the investor fee.
The investor fee was initially zero. On each subsequent day, it is an annualized amount equal to 1.15% of the closing indicative value on the previous day.
The notes are putable at any time, subject to a minimum of 50,000 C-Tracks and a 0.05% redemption charge. The notes became callable on Nov. 12, 2012.
The index is a measure of directional exposure to the implied volatility of large-cap U.S. stocks.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | C-Tracks exchange-traded notes
|
| Underlying index: | Citi Volatility Index Total Return
|
| Amount: | Up to $4 billion
|
| Maturity: | Nov. 12, 2020
|
| Coupon: | 0%
|
| Face amount: | $1,000
|
| Payout at maturity: | Cash amount equal to final closing indicative value
|
| Call option: | Beginning Nov. 12, 2012
|
| Put option: | At any time, subject to minimum of 50,000 C-Tracks and 0.05% redemption charge
|
| Inception date: | Nov. 12, 2010
|
| Settlement date: | Nov. 17, 2010 (for original $20 million)
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | None
|
| Cusip: | 17318Q475 (17316G727 prior to Jan. 2, 2013)
|
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