Citibank to price callable fixed-to-floating CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., May 8 - Citibank, NA plans to price callable fixed-to-floating-rate market-linked certificates of deposit due May 30, 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 6% for the first year. In years two through 20, the interest rate will be an annual rate equal to four times the modified CMS spread, subject to a minimum rate of zero and a maximum rate of 6% per year. The modified CMS spread equals the 30-year CMS rate minus the five-year CMS rate minus 0.875%. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning May 30, 2014, the CDs will be callable at par on any interest payment date.

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

The CDs will price May 24 and settle May 30.

The fees will be up to 5%.

The Cusip number is 172986GH8.

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