Citibank to price variable coupon market-linked CDs tied to 10 stocks

By Marisa Wong

Morgantown, W.Va., April 24 – Citibank, NA plans to price variable coupon market-linked certificates of deposit due April 30, 2024 linked to a basket of 10 stocks, according to a term sheet.

The equally weighted basket includes the stocks of Ford Motor Co., AT&T Inc., Cisco Systems, Inc., Verizon Communications Inc., Exxon Mobil Corp., Altria Group, Inc., Merck & Co., Inc., Chevron Corp., Apple Inc. and International Business Machines Corp.

The CDs will pay a coupon each year equal to the average of the basket stocks’ performances, subject to a minimum coupon rate of 1%.

If a basket stock’s return is zero or positive, its performance will be equal to the maximum stock return. If a basket stock’s return is negative, its performance will be the greater of its return and negative 15%. The maximum stock return is expected to be 5% to 5.5% and will be set at pricing.

The payout at maturity will be par plus the final coupon.

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

The CDs will price on April 25.

The Cusip number is 17294XQR0.

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