Published on 9/14/2011 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $1.08 million Pacers linked to homebuilder, gas funds
By Angela McDaniels
Tacoma, Wash., Sept. 14 - Citigroup Funding Inc. priced $1.08 million of 0% Premium Mandatorily Callable Equity-Linked Securities due Sept. 17, 2012 linked to the worst performing of the SPDR S&P Homebuilders exchange-traded fund and the United States Natural Gas Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a premium of 22.3% per year if the worst-performing fund closes at or above its initial price on any of three call dates, which are March 12, June 12, 2012 and Sept. 12, 2012. The last call date is also the final valuation date.
If the notes are not called, the payout at maturity will be par if the closing share price of each fund is greater than 60% of its initial share price throughout the life of the notes. Otherwise, the payout will be par plus the return of the worst-performing fund. This return will be negative because if the return on the final valuation date had been positive or flat, the notes would have been called.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Premium Mandatorily Callable Equity-Linked Securities
|
| Underlying funds: | SPDR S&P Homebuilders exchange-traded fund and the United States Natural Gas Fund, LP
|
| Amount: | $1,075,000
|
| Maturity: | Sept. 17, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if closing share price of each fund is greater than 60% of initial share price throughout life of notes; otherwise, par plus return of worst-performing fund, which will be negative
|
| Call: | Automatically at par plus 22.3% per year if worst-performing fund closes at or above initial price on March 12, June 12, 2012 or Sept. 12, 2012
|
| Initial share price: | $14.00 for homebuilders fund and $9.84 for natural gas fund
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 15
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 2.5%
|
| Cusip: | 1730T0NT2
|
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