Citigroup plans to price ELKS linked to Fannie Mae

By Jennifer Chiou

New York, Jan. 9 - Citigroup Funding Inc. plans to price Equity LinKed Securities (ELKS) linked to the common stock of Fannie Mae, according to an FWP filing with the Securities and Exchange Commission.

The securities will mature in about one year. They are expected to pay between 10% and 15% per year. The exact coupon will be determined at pricing.

If the trading price of Fannie Mae stock stays above the trigger price - expected to be about 50% of the initial share price - during the life of the notes, the payout at maturity will be par of $10.

Otherwise, the payout will be a number of Fannie Mae shares equal to par divided by the initial share price.

Citigroup said it will apply to list the ELKS on the American Stock Exchange under the symbol "EJC."

The notes are expected to price in January and settle three days later.

Citigroup Global Markets Inc. will be the agent.

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