Citigroup plans annual reset coupon securities linked to Russell 2000

By Devika Patel

Knoxville, Tenn., July 3 – Citigroup Global Markets Holdings Inc. plans to price annual reset coupon securities due Aug. 1, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Citigroup Inc.

Interest is payable annually. If the index return is zero or positive, the coupon will be 4% to 5%, with the exact rate to be set at pricing. If the index return is negative, the coupon will be 3%. The index's return will be measured compared to its level a year earlier.

The payout at maturity will be par plus the coupon unless the final index level is less than 85% of the initial index level, in which case investors will lose 1% for every 1% that the index declines beyond 15%, and also receive the final coupon.

Citigroup Global Markets Inc. is the underwriter.

The notes (Cusip: 17324CKT2) are expected to price on July 26 and settle three business days after pricing.

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