Citi to price fixed-to-inverse-floating range accrual notes on Russell

By Angela McDaniels

Tacoma, Wash., May 29 - Citigroup Inc. plans to price callable fixed-to-inverse-floating-rate range accrual notes due June 28, 2033 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 9% for the first year. In years two through 20, the interest rate will be the contingent floating rate multiplied by the proportion of days on which the index closes at or above the index reference level, which will be 70% of the initial index level. The contingent floating rate will be an annual rate equal to (a) 1.1 times (b) 7.6% minus Libor, subject to a minimum of zero. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning June 28, 2015, the notes will be callable at par on any interest payment date.

Citigroup Global Markets Inc. is the agent.

The notes are expected to price June 25 and settle three business days later.

The Cusip number is 1730T0TN9.

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