Published on 8/26/2016 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $1.36 million contingent coupon autocallables tied to three stocks
By Marisa Wong
Morgantown, W.Va., Aug. 26 – Citigroup Global Markets Holdings Inc. priced $1.36 million of autocallable contingent coupon equity-linked securities due Aug. 29, 2017 linked to the common stocks of Ulta Salon, Cosmetics & Fragrance, Inc., Estee Lauder Cos. Inc. and Nu Skin Enterprises, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Citigroup Inc.
Each month, the notes will pay a contingent coupon at an annualized rate of 18.05% if each stock closes at or above the barrier price, 70% of the initial price, on the valuation date for that month.
The notes will be automatically called at par of $1,000 plus the contingent coupon if each stock closes at or above its initial share price on any monthly valuation date beginning in November 2016 and ending in July 2017.
If the final share price of each stock 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 shares of the least-performing stock equal to $1,000 divided by the initial share price or, at the company’s option, the cash equivalent.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Global Markets Holdings Inc.
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| Guarantor: | Citigroup Inc.
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| Issue: | Autocallable contingent coupon equity-linked securities
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| Underlying stocks: | Ulta Salon, Cosmetics & Fragrance, Inc. (Nasdaq: ULTA), Estee Lauder Cos. Inc. (NYSE: EL) and Nu Skin Enterprises, Inc. (NYSE: NUS)
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| Amount: | $1,363,000
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| Maturity: | Aug. 29, 2017
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| Coupon: | 18.05% per year, payable monthly if each stock closes at or above barrier level on valuation date for that month
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to barrier level, par plus final coupon; otherwise, shares of least-performing stock or, at issuer’s option, cash equivalent
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any monthly valuation date beginning in November 2016 and ending in July 2017
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| Initial share prices: | $273.98 for Ulta, $90.50 for Estee Lauder, $58.69 for Nu Skin
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| Barrier: | $191.786 for Ulta, $63.35 for Estee Lauder, $41.083 for Nu Skin; 70% of initial share price
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 29
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| Underwriter: | Citigroup Global Markets Inc.
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| Fees: | 2.875%
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| Cusip: | 17324CAC0
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