Published on 4/2/2018 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $2.12 million autocallable contingent coupon securities linked to stocks
By Devika Patel
Knoxville, Tenn., April 2 – Citigroup Global Markets Holdings Inc. priced $2.12 million of autocallable contingent coupon equity-linked securities due March 2, 2020 linked to the common stock of Bank of America Corp., the common stock of Wells Fargo & Co. and the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if all stocks close at or above the coupon barrier level, 70% of the initial level, on the valuation date for that quarter.
The notes will be called at par plus the contingent coupon if all stocks close at or above the initial share price on any quarterly valuation date from May 2018 through November 2019.
The payout at maturity will be par plus the contingent coupon, if any, unless any stock finishes below the 65% barrier level, in which case 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 underwriter.
| Issuer: | Citigroup Global Markets Holdings Inc.
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| Guarantor: | Citigroup Inc.
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| Issue: | Autocallable contingent coupon equity-linked securities
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| Underlying stocks: | Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co.
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| Amount: | $2.12 million
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| Maturity: | March 2, 2020
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| Coupon: | 9% per year, payable quarterly if all stocks close at or above barrier level on valuation date for that quarter
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| Price: | Par
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| Payout at maturity: | If final price of each stock is greater than or equal to barrier level, par plus final coupon, if any; otherwise, a number of shares of the worst performing stock equal to the principal divided by the initial share price or the cash equivalent
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| Call: | At par plus contingent coupon if all stocks close at or above initial share price on any quarterly valuation date from May 2018 through November 2019
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| Initial share prices: | $32.03 for Bank of America, $59.17 for Wells Fargo, $117.31 for JPMorgan
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| Coupon barrier levels: | $22.421 for Bank of America, $41.419 for Wells Fargo, $82.117 for JPMorgan, 70% of initial share prices
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| Barrier levels: | $20.82 for Bank of America, $38.461 for Wells Fargo, $76.252 for JPMorgan, 65% of initial share prices
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| Pricing date: | Feb. 23
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| Settlement date: | March 2
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| Underwriter: | Citigroup Global Markets Inc.
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| Fees: | 1.81%
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| Cusip: | 17324XLP3
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