Citigroup files automatic shelf for principal-protected certificates linked to S&P 500

By Laura Lutz

Des Moines, July 19 - Citigroup Inc. filed an automatic shelf registration for principal-protected trust certificates to be marketed under the Safety First Trust name in an S-3ASR filing with the Securities and Exchange Commission.

The filing includes certificates that mature in 2010 with a payout of the $10 par amount plus a supplement based on the S&P 500 Index.

The certificates can be converted until maturity into one $10 equity index participation security and one $10 equity index warrant.

The equity index participation securities will pay $10 plus a positive or negative amount based on the S&P 500 return.

The equity index warrants will be automatically exercised in 2010. If the S&P 500 has dropped, they will pay the product of $10 and the percent decrease in the index. If the S&P 500 does not decrease, the warrants will pay nothing.

Citigroup is the underwriter for the securities.

The company will use the proceeds for general corporate purposes.

New York-based Citigroup is a financial services company.

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