Citi plans five-year leveraged CMS spread notes with 4% initial rate

By Susanna Moon

Chicago, Feb. 7 - Citigroup Inc. plans to price leveraged CMS spread notes due Feb. 28, 2019 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.

Interest will be fixed at 4% for the first two years. After that, it will be the 30-year CMS rate minus the five-year CMS rate, with a minimum rate of 1.5%. Interest will be payable quarterly.

The payout at maturity will be par.

Citigroup Global Markets Inc. is the underwriter.

The notes will price on Feb. 25 and settle on Feb. 28.

The Cusip number is 1730T0J83.

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