Citigroup plans to price ELKS linked to Yahoo!

By Angela McDaniels

Seattle, Nov. 27 - Citigroup Funding Inc. plans to price an issue of notes in the Equity LinKed Securities (ELKS) structure linked to the common stock of Yahoo! Inc., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes are expected to pay between 6.25% and 6.75% for an annualized rate of between 12.5% and 13.5%. The exact coupon will be determined at pricing, which will be sometime in December.

The payout at maturity will be par of $10.00 in cash unless Yahoo! stock trades below the trigger price - expected to be 80% of the initial share price - during the life of the notes, in which case the payout will be a number of Yahoo! shares equal to par of $10.00 divided by the initial share price.

Citigroup Global Markets Inc. will be the agent for the offering and will receive a commission of 1.25%.

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