Citigroup plans callable contingent coupon notes tied to EM, oil ETFs

By Angela McDaniels

Tacoma, Wash., June 2 – Citigroup Global Markets Holdings Inc. plans to price callable contingent coupon equity-linked securities due June 10, 2021 linked to the lesser performing of the iShares MSCI Emerging Markets exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Citigroup Inc.

Each quarter, the notes will pay a contingent coupon if the lesser-performing ETF closes at or above its coupon barrier price, 70% of its initial share price, on the valuation date for that quarter. The contingent coupon rate is expected to be 9.5% to 10% per year and will be set at pricing.

Beginning June 12, 2019, the notes will be callable at par quarterly.

The payout at maturity will be par unless the lesser-performing ETF finishes below its final barrier price, 60% of its initial share price, in which case investors will be exposed to the lesser-performing ETF’s decline from its initial share price.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price June 5.

The Cusip number is 17324CK70.

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