By Toni Weeks
San Luis Obispo, Calif., March 5 – Citigroup Inc. priced $4.46 million of 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 15% if U.S. Steel stock closes at or above the barrier level, 55.35% of the initial share price, on the valuation date for that quarter.
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 55.35% 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.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying stock: | United States Steel Corp. (Symbol: X)
|
| Amount: | $4,455,000
|
| Maturity: | March 8, 2017
|
| Coupon: | If U.S. Steel shares close at or above barrier level on a quarterly determination date, notes pay a contingent payment that quarter at annualized rate of 15%
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to barrier level, par plus final contingent coupon; otherwise, full exposure to the decline in the stock price
|
| Call option: | At par on any quarterly contingent coupon payment date
|
| Initial share price: | $22.67
|
| Barrier level: | $12.548, 55.35% of initial price
|
| Pricing date: | March 3
|
| Settlement date: | March 9
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 1.75%
|
| Cusip: | 1730T06C8
|
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