Citigroup plans contingent coupon autocallables tied to Gilead Sciences

By Angela McDaniels

Tacoma, Wash., Aug. 4 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Aug. 30, 2017 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annualized rate of 8% to 10% if Gilead Sciences stock closes at or above the barrier price, 80% of the initial price, on the valuation date for that quarter. The exact rate will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if Gilead Sciences shares close at or above the initial share price on any of the first 11 quarterly valuation dates.

If the final share price is greater than or equal to the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of Gilead Sciences shares equal to $1,000 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 Aug. 25.

The Cusip number is 1730T0W54.

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