By Angela McDaniels
Tacoma, Wash., Aug. 9 – Citigroup Global Markets Holdings Inc. priced $25 million of C-Tracks exchange-traded notes, series B, due July 13, 2026 linked to the Miller/Howard MLP Fundamental index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
The company registered to sell up to $250 million of the notes. It will sell the additional notes from time to time at varying prices.
The index is designed to measure the performance of 25 energy master limited partnerships selected quarterly by a methodology that is based on certain quantitative fundamental factors of publicly traded MLPs, including distribution growth, estimated capital expenditures and distribution coverage.
Each quarter, the notes will pay a coupon amount equal to the accrued distribution amount, which is based on the ordinary cash distributions that a hypothetical holder of the index constituents would have been entitled to receive during the relevant period, reduced by the accrued investor fee.
The payout at maturity will be an amount equal to the closing indicative value of the C-Tracks adjusted down by any final coupon amount due at maturity.
On any day, the closing indicative value equals (i) the current value of the C-Tracks on that day plus (ii) the accrued distribution amount on that day minus (iii) the accrued investor fee on that day.
The current value was $25 on the inception date, Aug. 8. On subsequent days, it equals the current value on the immediately preceding day multiplied by the daily return factor, which equals the closing level of the index on that day divided by the closing level on the preceding day.
The accrued investor fee was zero on the inception date. On each subsequent day, it is (i) the accrued investor fee on the immediately preceding calendar day plus (ii) (a) 0.85% multiplied by (b) the closing indicative value on the previous calendar day divided by 365 minus (iii) the coupon fee adjustment amount on the current calendar day.
The notes are putable at any time, subject to a minimum of 25,000 notes and a 0.1% redemption charge. The notes are callable beginning Jan. 1, 2017. The payout will be equal to the closing indicative value.
The notes have been approved for listing on NYSE Arca under the symbol "MLPE” and were scheduled to begin trading Aug. 9.
Citigroup Global Markets Inc. is the underwriter.
Parent company notes
Citigroup Inc. has $140,883,150 principal amount outstanding of C-Tracks ETNs linked to the same index (the “parent company C-Tracks”).
The parent company C-Tracks mature Sept. 28, 2023, have a higher minimum redemption amount (50,000 notes instead of 25,000 notes) and a higher accrued investor fee rate equal to (i) the accrued investor fee on the immediately preceding calendar day plus (ii) (a) 0.95% multiplied by (b) the closing indicative value on the previous calendar day divided by 365 minus (iii) the coupon fee adjustment amount on the current calendar day.
Citigroup Inc. does not plan to issue any additional parent company C-Tracks, although Citigroup Global Markets may sell the C-Tracks that it may hold in inventory from time to time.
The parent company C-Tracks trade under the symbol “MLPC.” On Aug. 8, their closing indicative value was $16.68 per $25.00 principal amount.
| Issuer: | Citigroup Global Markets Holdings Inc.
|
| Guarantor: | Citigroup Inc.
|
| Issue: | C-Tracks exchange-traded notes, series B
|
| Underlying index: | Miller/Howard MLP Fundamental index
|
| Amount: | $25 million
|
| Maturity: | July 13, 2026
|
| Coupon: | Amount equal to accrued distribution amount, which is based on ordinary cash distributions that hypothetical holder of index constituents would have been entitled to receive during relevant period, reduced by accrued investor fee; payable quarterly
|
| Face amount: | $25
|
| Payout at maturity: | Cash amount equal to final closing indicative value, adjusted down by any final coupon amount due at maturity
|
| Call option: | Beginning Jan. 1, 2017
|
| Put option: | At any time, subject to minimum of 25,000 C-Tracks and 0.1% redemption charge
|
| Initial index factor: | 2.6348, equal to initial index level divided by $25
|
| Inception date: | Aug. 8
|
| Settlement date: | Aug. 11
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | No underwriting discount; underwriter is entitled to receive accrued investor fee and any redemption charge
|
| Listing: | NYSE Arca: MLPE
|
| Cusip: | 17324P859
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
