Citigroup plans contingent income autocallable notes tied to JPMorgan

By Devika Patel

Knoxville, Tenn., Dec. 28 – Citigroup Global Markets Holdings Inc. plans to price contingent income autocallable securities due Jan. 7, 2022 linked to JPMorgan Chase & Co. common shares, 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 annualized rate of 11.1% if JPMorgan stock closes at or above its 65% downside threshold level on the valuation date for that quarter.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above its initial level on any quarterly valuation date beginning on April 4, 2019 and ending on Oct. 4, 2021.

The payout at maturity will be par plus the final coupon unless the stock finishes below the 65% downside threshold level, in which case investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes (Cusip: 17326W373) will price on Jan. 4 and settle three business days after pricing.

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