Citigroup to price buffered range accrual notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., April 5 - Citigroup Funding Inc. plans to price buffered range accrual notes due Oct. 29, 2015 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 6% to 6.5% per year multiplied by the proportion of days on which the index closes at or above the downside reference level, which will be 85% of the initial index level. Interest will be payable quarterly.

If the final index level is greater than or equal to the downside reference level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines beyond 15%.

The notes (Cusip: 1730T0WZ8) are expected to price April 24 and settle April 27.

Citigroup Global Markets Inc. is the underwriter.

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