Citigroup plans autocallable contingent coupon notes tied to Facebook

By Susanna Moon

Chicago, Jan. 12 – Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due Jan. 31, 2018 linked to the class A common stock of Facebook, Inc., according to an FWP filed with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% to 11% if Facebook stock closes at or above the coupon barrier level, 80% of the initial price, on the valuation date for that quarter. The exact contingent coupon rate will be set at pricing.

The notes will be called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any quarterly valuation date beginning in January 2017.

The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 80% trigger level, in which case investors 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 agent.

The notes will price on Jan. 26.

The Cusip number is 17298C6E3.

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