Citigroup plans nine-month 6.75%-8.75% ELKS linked to Ford and Nokia

By Toni Weeks

San Diego, March 11 - Citigroup Funding Inc. plans to price 6.75% to 8.75% annualized Equity LinKed Securities due Dec. 12, 2011 linked to a basket of two stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of equal weights of the common stock of Ford Motor Co. and American Depositary Receipts of Nokia Corp.

Interest will be payable monthly. The exact rate will be set at pricing.

The payout at maturity will be par of $10 unless the basket falls to or below 80% of the initial price during the life of the notes, in which case the payout will be a number of shares of Ford stock and ADRs of Nokia equal to $10 divided by the initial prices or, at the investor's option, an equivalent cash amount.

The notes (Cusip: 17316G222) are expected to price and settle in March.

Citigroup Global Markets Inc. is the underwriter.

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