Citigroup to price callable contingent coupon notes linked to U.S. Steel

By Toni Weeks

San Luis Obispo, Calif., March 2 – Citigroup Inc. plans to price callable contingent coupon notes due March 8, 2017 linked to United States Steel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 15% if U.S. Steel stock closes at or above the barrier level, 56.5% of the initial share price, on the valuation date for that quarter. The exact contingent coupon will be set at pricing.

The notes are callable at par plus the contingent coupon on any quarterly contingent coupon payment date.

If the notes are not called and the stock finishes at or above the 56.5% barrier level, the payout at maturity will be par plus the last coupon.

Otherwise, investors will be fully exposed to the decline in the stock price.

The notes (Cusip: 1730T06C8) are expected to price March 3 and settle March 9.

Citigroup Global Markets Inc. is the underwriter.

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