Citigroup plans contingent coupon autocallables tied to PayPal, Square

By Angela McDaniels

Tacoma, Wash., Nov. 15 – Citigroup Global Markets Holdings Inc. plans to price autocallable contingent coupon equity-linked securities due Nov. 27, 2020 linked to the lesser performing of the common stocks of PayPal Holdings, Inc. and Square, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon plus any previously unpaid contingent coupons if the lesser-performing stock closes at or above its barrier value, 60% of its initial share price, on the valuation date for that quarter. The contingent coupon rate is expected to be 8% to 9% per year and will be set at pricing.

The notes will be automatically called at par if the lesser-performing stock closes at or above its initial share price on any quarterly valuation date other than the final one.

If the final share price of the lesser-performing stock is greater than or equal to its barrier value, the payout at maturity will be par. Otherwise, investors will receive a number of shares of the lesser-performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.

The notes will be guaranteed by Citigroup Inc.

Citigroup Global Markets Inc. is the underwriter.

The notes will price Nov. 22.

The Cusip number is 17324XUF5.

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