Published on 8/2/2013 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $2.97 million fixed-to-float trigger securities linked to Russell 2000
By Toni Weeks
San Luis Obispo, Calif., Aug. 2 - Citigroup Inc. priced $2.97 million of fixed-to-float trigger securities due Aug. 5, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be fixed at 4.05% for the first three years. Beginning Aug. 5, 2016, the interest rate will be Libor plus 315 basis points. Interest is payable quarterly.
If the final index level is greater than or equal to the trigger level, 65% of the initial index level, the payout at maturity will be par.
If the final index level is less than the trigger level, investors will lose 1% for every 1% that the final index level is less than the initial level.
Citigroup Global Markets Inc. is the underwriter.
Issuer: | Citigroup Inc.
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Issue: | Fixed-to-float trigger securities
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Underlying index: | Russell 2000
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Amount: | $2,965,000
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Maturity: | Aug. 5, 2020
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Coupon: | 4.05% for first three years; beginning Aug. 5, 2016, Libor plus 315 bps; payable quarterly
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Price: | Par
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Payout at maturity: | If final index level is greater than or equal to trigger level, par; otherwise, full exposure to losses from initial level
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Initial level: | 1,045.26
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Trigger level: | 679.419, 65% of initial level
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Pricing date: | July 31
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Settlement date: | Aug. 5
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Underwriter: | Citigroup Global Markets Inc.
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Fees: | 3.5%
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Cusip: | 1730T0UL1
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