Citigroup plans contingent coupon autocallable notes tied to Amazon

By Tali Rackner

Minneapolis, Feb. 14 – Citigroup Global Markets Holdings Inc. plans to price autocallable contingent coupon equity-linked securities due Feb. 21, 2019 linked to the common stock of Amazon.com, Inc., 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 8% to 8.5% if Amazon stock closes at or above the coupon barrier price, 80% of the initial price, on the valuation date for that quarter. The exact contingent coupon rate will be set at pricing.

Beginning in May and ending in November 2018, the notes will be automatically called at par of $1,000 plus the contingent coupon if Amazon shares close at or above the initial share price on any quarterly valuation date.

If the final share price is greater than or equal to the 80% final barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors receive a number of Amazon shares 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.

The notes will price on Feb. 15.

The Cusip number is 17324XHD5.

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