Citi plans contingent coupon autocallables linked to Hewlett-Packard

By Susanna Moon

Chicago, Oct. 4 - Citigroup Inc. plans to price autocallable contingent coupon equity-linked securities due November 2014 linked to Hewlett-Packard Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.5% to 11.5% if Hewlett-Packard stock closes at or above the 75% barrier level on the valuation date for that quarter. The exact contingent quarterly coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three quarterly valuation dates.

If the stock finishes at or above the 75% barrier level, the payout at maturity will be par plus the last coupon.

Otherwise, investors will receive a number of Hewlett-Packard shares equal to $1,000 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

Citigroup Global Markets Inc. is the underwriter.

The notes are expected to price on Oct. 25 and settle three days later.

The Cusip number is 1730T0A33.

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