Published on 2/14/2020 in the Prospect News Structured Products Daily.
New Issue: Citigroup sells $25 million trigger callable contingent yield notes on six stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 14 – Citigroup Global Markets Holdings Inc. priced $25 million of trigger callable contingent yield notes due Feb. 16, 2023 linked to the least performing of the stocks of Apple Inc., Alibaba Group Holding Ltd., Facebook, Inc., Microsoft Corp., Amazon.com, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
Each quarter, the notes pay a contingent coupon at a rate of 22% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
The notes are callable at par of $10 plus any coupon due on any quarterly coupon payment date.
If the notes are not called and each stock finishes at or above its downside threshold, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final level is below its initial level.
Citigroup Global Markets Inc. is the underwriter, and UBS Financial Services Inc. is the selling agent.
| Issuer: | Citigroup Global Markets Holdings Inc.
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| Guarantor: | Citigroup Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying stocks: | Alibaba Group Holding Ltd., Facebook, Inc., Microsoft Corp., Apple Inc., Amazon.com, Inc. and Alphabet Inc.
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| Amount: | $25 million
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| Maturity: | Feb. 16, 2023
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| Coupon: | 22% per year, payable quarterly if each stock closes at or above its coupon barrier on observation date that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing stock’s final level is below initial level
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| Call option: | At par plus any coupon due on any quarterly coupon payment date
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| Initial levels: | $216.53 for Alibaba, $212.33 for Facebook, $183.89 for Microsoft, $2,079.28 for Amazon, $320.03 for Apple, $1,479.11 for Alphabet
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| Coupon barriers: | $151.571 for Alibaba, $148.631 for Facebook, $128.723 for Microsoft, $1,455.496 for Amazon, $224.021 for Apple, $1,035.377 for Alphabet, or 70% of initial levels
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| Downside thresholds: | $151.571 for Alibaba, $148.631 for Facebook, $128.723 for Microsoft, $1,455.496 for Amazon, $224.021 for Apple, $1,035.377 for Alphabet, or 70% of initial levels
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| Pricing date: | Feb. 7
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| Settlement date: | Feb. 12
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| Underwriter: | Citigroup Global Markets Inc.
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| Selling agent: | UBS Financial Services Inc.
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| Fees: | 5%
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| Cusip: | 17327U780
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