Citigroup plans contingent income autocallable notes on Marathon Oil

By Devika Patel

Knoxville, Tenn., May 8 – Citigroup Global Markets Holdings Inc. plans to price contingent income autocallable securities due Nov. 14, 2017 linked to Marathon Oil Corp. common shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Citigroup Inc.

The notes will pay a contingent monthly coupon at an annualized rate of at least 11.748% if Marathon Oil stock closes at or above its 70% downside threshold level on the observation date for that month. The exact coupon will be set at pricing.

The notes will be redeemed at par of $10 plus the contingent payment if the stock closes at or above the initial level on any determination date other than the final date, beginning June 9, 2017.

The payout at maturity will be par plus the final coupon unless the stock finishes below the downside threshold level, in which case investors will lose 1% for every 1% that the final share price is less than the initial share price.

Citigroup Global Markets Inc. is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 17325K172) will price on May 9 and settle three business days after pricing.

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