Citigroup plans contingent coupon autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Sept. 2 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Sept. 21, 2017 linked to the class A 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 10% if Facebook stock closes at or above the barrier price, 75% of the initial price, on the valuation date for that quarter. The exact contingent coupon rate will be set at pricing.

Beginning in September 2016, 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 valuation date other than the final one.

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 lose 1% for every 1% that the final share price is less than the initial share price.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price Sept. 18.

The Cusip number is 17298CEA2.

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