Citigroup plans contingent coupon notes tied to S&P 500, Russell 2000

By Angela McDaniels

Tacoma, Wash., June 26 – Citigroup Global Markets Holdings Inc. plans to price callable contingent coupon equity-linked securities due July 1, 2032 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, 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 index closes at or above its coupon barrier level, 67.5% of its initial level, on the valuation date for that quarter. The contingent coupon rate is expected to be at least 7.125% per year for the first five years and at least 10% per year for the final 10 years. Both will be set at pricing.

Beginning July 5, 2018, the notes will be callable at par quarterly.

The payout at maturity will be par unless the lesser-performing index finishes below its barrier level, 50% of its initial level, in which case investors will be exposed to the lesser-performing index’s decline from its initial level.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price June 27.

The Cusip number is 17324CKN5.

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