Citigroup plans to price 15-year callable leveraged CMS spread notes

By Jennifer Chiou

New York, April 30 - Citigroup Funding Inc. plans to price callable leveraged CMS spread principal-protected notes due May 28, 2025, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 10% for the first year. After that, the rate will be five times the spread of the 30-year Constant Maturity Swap rate and the two-year CMS rate, up to a maximum of 10% per year in each interest period. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning on May 28, 2013.

The notes are expected to price and settle in May.

Citigroup Global Markets Inc. is the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.