Citigroup plans autocallable equity-linked securities on Valero Energy

By Toni Weeks

San Luis Obispo, Calif., Nov. 22 - Citigroup Inc. plans to price autocallable equity-linked securities due Dec. 4, 2014 tied to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will carry a coupon of at least 10% per year, with the actual interest rate to be set at pricing. Interest will be payable quarterly.

The notes will be automatically redeemed at par of $10 plus interest if Valero shares close at or above the initial share price on Feb. 28, May 29 or Aug. 29, 2014.

If the notes are not called and the final share price is at least 80% of the initial share price, the payout at maturity will be par. Otherwise, the payout will be a number of Valero shares equal to $10 divided by the initial share price or, at the issuer's option, an equivalent amount in cash.

The notes (Cusip: 17321F516) are expected to price Nov. 29 and settle three business days later.

Citigroup Global Markets Inc. is the agent.

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