Citigroup intends to sell contingent coupon autocallables on indexes

By Devika Patel

Knoxville, Tenn., Dec. 28 – Citigroup Global Markets Holdings Inc. plans to sell autocallable contingent coupon equity-linked securities due July 31, 2020 linked to the worst performing of the S&P 500 index and the Russell 2000 index, 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 7.5% to 9.5% if the worst-performing index closes at or above its expected coupon barrier level, 70% of its initial level, on the valuation date for that quarter. The exact coupon and coupon barrier level will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if the worst-performing index closes at or above its initial level on any quarterly valuation date beginning on July 29, 2019 and ending on April 28, 2020.

A knock-in event will occur if either underlying index closes at or below its knock-in level which is expected to be about 70% of the initial level and will be set at pricing, on any trading day during life of the notes.

The payout at maturity will be par plus any coupon unless the final level of the worst-performing index is less than its initial level and a knock-in event occurred, in which case, investors will lose 1% for each 1% decline of the worst-performing index from its initial level.

Citigroup Global Markets Inc. is the agent.

The notes (Cusip: 17326YN28) will price Jan. 28 and settle Jan. 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.