Citigroup plans autocallable contingent coupon notes tied to Alphabet

By Wendy Van Sickle

Columbus, Ohio, Feb. 4 – Citigroup Inc. plans to price autocallable contingent coupon equity linked securities due March 2018 based on the class A common stock of Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annual rate of 7% to 8% if Alphabet stock closes at or above the coupon barrier level, 80% of the initial price, on the valuation date for that period. The exact contingent coupon rate will be set at pricing.

The notes will be called at par plus the contingent coupon if Alphabet shares close at or above the initial share price on any semiannual valuation date beginning in February 2017.

The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 80% trigger level, in which case investors receive a number of Alphabet shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.

Citigroup Global Markets Inc. is the agent.

The notes will price on Feb. 24.

The Cusip number is 17298C7M4.

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