Citigroup plans contingent coupon autocallables linked to two stocks

By Tali Rackner

Minneapolis, Aug. 28 – Citigroup Global Markets Holdings Inc. plans to price autocallable contingent coupon equity-linked securities due Sept. 17, 2018 linked to the lesser performing of the common stocks of Biogen Inc. and Celgene Corp., 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 at an annualized rate of 10% to 11% if each stock closes at or above its coupon barrier price, 77.5% of its initial share price, on the valuation date for that quarter. The exact coupon will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if either stock closes at or above its initial share price on any quarterly valuation date beginning in December 2017 and ending in June, 2018.

If the final share price of the worst-performing stock is greater than or equal to its final barrier price, 77.5% of its initial share price, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will receive a number of shares of the worst performing stock equal to the principal divided by the initial share price or, at the company’s option, the cash equivalent.

Citigroup Global Markets Inc. is the agent.

The notes are expected to price on Sept. 12.

The Cusip number is 17324XDA5.

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