Citigroup plans issue of Elks exchangeable for Tenaris

By Angela McDaniels

Seattle, March 22 - Citigroup Funding Inc. plans to price an issue of Elks (equity-linked securities) linked to the American Depositary Receipts representing the ordinary shares of Tenaris SA, according to a 424B2 filing with the Securities and Exchange Commission.

The Elks will pay a coupon, to be determined at pricing.

At maturity, investors will receive par in cash unless Tenaris ADRs trade below a trigger price during the life of the notes. If the trigger is hit, the payout will be a number Tenaris ADRs equal to 10 divided by the initial ADR price.

The trigger price is expected to be about 80% of the initial ADR price.

Citigroup will act as underwriter for the offering.

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