Citigroup plans to sell 8%-10% ELKS linked to Freeport-McMoRan stock

By Susanna Moon

Chicago, Jan. 12 - Citigroup Funding Inc. plans to price 8% to 10% annualized Equity LinKed Securities due Feb. 24, 2011 based on the common stock of Freeport-McMoRan Copper and Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable semiannually.

The payout at maturity will be par of $10.00 unless Freeport-McMoRan stock falls below the trigger price - 75% of the initial price - during the life of the notes, in which case investors will receive a number of Freeport-McMoRan shares equal to $10.00 divided by the initial price or, at the holder's option, the value of those shares in cash.

The ELKS are expected to price on Jan. 25 and settle three days later.

Citigroup Global Markets, Inc. is the underwriter.

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