Citigroup plans dual directional trigger PLUS linked to financial ETF

By Angela McDaniels

Tacoma, Wash., Aug. 29 - Citigroup Funding Inc. plans to price 0% dual directional trigger Performance Leveraged Upside Securities due Sept. 29, 2014 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the exchange-traded fund's final share price is greater than or equal to the initial share price, the payout at maturity will be par of $10.00 plus 150% of the increase, subject to a maximum return of 23% to 27% that will be set at pricing.

If the final share price is less than the initial share price but is greater than or equal to the trigger price, the payout will be par plus the absolute value of the ETF return. The trigger price will be 80% of the initial share price.

If the final share price is less than the trigger level, investors will be fully exposed to the decline from the initial share price.

The notes are expected to price Sept. 27 and settle Oct. 2.

Citigroup Global Markets Inc. is the underwriter with Morgan Stanley Smith Barney LLC as dealer.

The Cusip number is 17318Q582.

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