Citigroup plans to price two-year Pacers linked to S&P 500 index

By Jennifer Chiou

New York, Oct. 15 - Citigroup Funding Inc. plans to price 0% Premium Mandatory Callable Equity-linked Securities due November 2012 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above the initial level on the call date, the notes will be called at par plus an annualized call premium of 8% to 10% that will be set at pricing.

If the notes are not called, the payout at maturity will be par plus a fixed return of 8% to 10% if the final index level is at least 90% of the initial level. Investors will receive par if the index finishes at or greater than 75% of the initial level to 90% of the initial level. Investors will be fully exposed to the decline if the index finishes below 75% of the starting level.

The securities (Cusip: 1730T0KQ1) will price and settle in November.

Citigroup Global Markets Inc. is the underwriter.

© 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.