Citigroup plans autocallable contingent coupon notes tied to Facebook

By Marisa Wong

Madison, Wis., July 14 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Aug. 2, 2018 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent semiannual coupon at an annualized rate of 7% to 8% if Facebook stock closes at or above the barrier level, 80% of the initial price, on the valuation date for that period.

The notes will be called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any valuation date beginning July 28, 2016.

If the stock finishes at or above the 80% barrier level, 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, the cash equivalent.

Citigroup Global Markets Inc. is the underwriter.

The notes will price on July 28.

The Cusip number is 17298CCY2.

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