Citigroup plans autocallable contingent coupon notes tied to Facebook

By Marisa Wong

Madison, Wis., Jan. 2 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Jan. 28, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annualized rate of 8% to 9.5% if Facebook stock closes at or above the barrier price, 80% of the initial price, on the valuation date for that quarter.

The notes will be automatically called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any of the first three quarterly valuation dates.

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

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price on Jan. 23.

The Cusip number is 1730T03Y3.

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