By Toni Weeks
San Diego, June 1 - Citigroup Funding Inc. priced $8.22 million of 14% annualized single observation Equity LinKed Securities due Dec. 27, 2012 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The payout at maturity will be par of $10 unless Valero shares fall below 80% of the initial price on the Dec. 21, 2012 valuation day, in which case the payout will be a number of shares of Valero stock equal to $10 divided by the initial price or, at the investor's option, an equivalent cash amount.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Equity LinKed Securities
|
| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
|
| Amount: | $8.22 million
|
| Maturity: | Dec. 27, 2012
|
| Coupon: | 14%, payable monthly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par in cash unless Valero shares finish below downside threshold price, in which case 0.45851 shares of Valero stock or equivalent amount in cash
|
| Initial share price: | $21.81
|
| Downside threshold price: | $17.448, 80% of initial share price
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Underwriter: | Citigroup Global Markets Inc., with Morgan Stanley Smith Barney LLC as distributor
|
| Fees: | 1.5%
|
| Cusip: | 17318Q830
|
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