Citigroup plans 8.5% contingent income autocalls on Northrop Grumman

By Sarah Lizee

Olympia, Wash., Nov. 5 – Citigroup Global Markets Holdings Inc. plans to price contingent income autocallable securities due Nov. 15, 2021 linked to Northrop Grumman Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 8.5% if the underlying stock closes at or above the 75% downside threshold on the determination date for that quarter.

Beginning February 2019, the notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any valuation date other than the final date.

The payout at maturity will be par unless the stock finishes below its 75% downside threshold, in which case investors will lose 1% for each 1% decline.

The notes will be guaranteed by Citigroup Inc.

Citigroup Global Markets Inc. is the underwriter. Morgan Stanley Wealth Management is handling distribution.

The notes will price on Nov. 9 and settle three business days later.

The Cusip number is 17326X421.

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