By Toni Weeks
San Luis Obispo, Calif., Dec. 24 – Citigroup Inc. priced $2.18 million autocallable contingent coupon equity-linked securities due June 27, 2016 linked to Gilead Sciences, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 2.5%, equivalent to 10% per year, if Gilead Sciences stock closes at or above the barrier level, 80% of the initial share price, on the valuation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first five quarterly valuation dates.
If the notes are not called and the stock finishes at or above the 80% barrier level, the payout at maturity will be par plus the last 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.
| Issuer: | Citigroup Inc.
|
| Issue: | Autocallable contingent coupon equity-linked securities
|
| Underlying stock: | Gilead Sciences, Inc. (Nasdaq: GILD)
|
| Amount: | $2,181,000
|
| Maturity: | June 27, 2016
|
| Coupon: | 10% per year, payable quarterly if closing price of Gilead Sciences shares is greater than or equal to barrier price on valuation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless Gilead Sciences shares finish below barrier price, in which case 10.76426 Gilead Sciences shares
|
| Call: | At par plus contingent coupon if closing share price is greater than or equal to initial share price on any of first five quarterly valuation dates
|
| Initial share price: | $92.90
|
| Barrier price: | $74.32, 80% of initial share price
|
| Pricing date: | Dec. 22
|
| Settlement date: | Dec. 26
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 1.5%
|
| Cusip: | 1730T03R8
|
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