Published on 5/26/2020 in the Prospect News Structured Products Daily.
New Issue: Citigroup sells $875,000 contingent coupon autocallable notes on tech stocks
By Kiku Steinfeld
Chicago, May 26 – Citigroup Global Markets Holdings Inc. priced $875,000 of autocallable contingent coupon equity-linked securities due May 23, 2022 tied to the common stocks of Alphabet Inc., Amazon.com, Inc., Facebook, Inc. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
The notes carry a coupon of 11.6% per year, payable quarterly if each stock closes above its coupon barrier, 60% of its initial level, on the observation date for that period.
The notes will be automatically redeemed at par plus the contingent coupon if the worst-performing stock closes at or above its initial price on any quarterly autocall date.
The payout at maturity will be par plus any final coupon unless any underlier finishes below the 50% final barrier value, in which case investors will receive a fixed number of shares of the worst performing underlying equal to its equity ratio or, if Citigroup prefers, the cash value of those shares. Each stock’s equity ratio will be equal to $1,000 divided by that stock’s initial share price.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Global Markets Holdings Inc.
|
| Guarantor: | Citigroup Inc.
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| Issue: | Autocallable contingent coupon equity-linked securities
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| Underlying stocks: | Alphabet Inc., Amazon.com, Inc., Facebook, Inc. and Apple Inc.
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| Amount: | $875,000
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| Maturity: | May 23, 2022
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| Coupon: | 11.6%, payable quarterly if stocks close above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus any final coupon unless any underlier finishes below final barrier, in which case a fixed number of shares of worst performing underlying equal to its equity ratio or cash value
|
| Call: | At par plus coupon if the worst-performing stock closes at or above initial price on any quarterly autocall date
|
| Initial prices: | $1,356.86 for Alphabet, $2,388.85 for Amazon.com, $206.81 for Facebook, $309.54 for Apple
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| Coupon barriers: | $814.116 for Alphabet, $1,433.310 for Amazon.com, $124.086 for Facebook, $185.724 for Apple; 60% of initial levels
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| Final barriers: | $678.430 for Alphabet, $1,194.425 for Amazon.com, $103.405 for Facebook, $154.770 for Apple; 50% of initial levels
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| Equity ratios: | 0.73700 for Alphabet, 0.41861 for Amazon, 3.23060 for Apple and 4.83536 for Facebook; equal to $1,000 divided by stock’s initial share price
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agent: | Citigroup Global Markets Inc.
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| Fees: | 1.25%
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| Cusip: | 17324XE30
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