Citigroup plans to price 20-year callable leveraged CMS spread notes

By Marisa Wong

Madison, Wis., June 24 - Citigroup Inc. plans to price callable leveraged CMS spread notes due July 9, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is expected to be 10% for the first year. Beginning July 9, 2014, it will be 4.35 times the spread of the 30-year CMS rate minus the five-year CMS rate, 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 July 9, 2015, the notes will be callable at par on any interest payment date.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to settle July 9.

The Cusip number is 1730T0UB3.

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