Citigroup plans to price 10-year callable leveraged CMS spread notes

By Toni Weeks

San Luis Obispo, Calif., March 12 - Citigroup Inc. plans to price callable leveraged CMS spread notes due March 21, 2024 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 8.5% to 9% for the first year. After that, it will be (i) 4 times (ii) the 30-year CMS rate minus the five-year CMS rate minus 25 basis points, up to a maximum interest rate of 8.5% to 9%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning March 21, 2015.

The exact terms will be set at pricing.

The notes (Cusip: 1730T0L98) are expected to price March 18 and settle March 21.

Citigroup Global Markets Inc. is the underwriter.

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