Citigroup plans 12.25%- 13.25% reverse convertibles linked to SanDisk

By Susanna Moon

Chicago, Jan. 19 - Citigroup Funding Inc. plans to price reverse convertible notes due Aug. 24, 2011 based on the performance of SanDisk Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The annualized coupon will be 12.25% to 13.25%, payable at maturity. The exact percentage will be set at pricing.

The payout at maturity will be par of $10 in cash unless SanDisk shares fall below 70% of the initial price during the life of the notes and finish below the initial price, in which case the payout will be a number of SanDisk shares equal to $10 divided by the initial price.

The notes (Cusip 17316G479) are expected to price and settle in January.

Citigroup Global Markets Inc. is the underwriter.

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