Citibank to price 20-year callable fixed-to-floating CMS spread CDs

By Marisa Wong

Madison, Wis., Dec. 6 - Citibank, NA plans to price callable fixed-to-floating CMS spread certificates of deposit due Dec. 16, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a term sheet.

The interest rate will be 10% for the first year. Beginning on Dec. 16, 2014, it will be 4 times the spread of the 30-year CMS rate minus the five-year CMS rate less 45 bps, subject to a minimum interest rate of zero and a maximum interest rate of 10% per year. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning on Dec. 16, 2014, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 172986GY1) are expected to price on Dec. 11 and settle on Dec. 16.

Citigroup Global Markets Inc. is the underwriter. Advisors Asset Management, Inc. is the distributor.

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