Citibank to price fixed-to-inverse floating CDs linked to S&P 500

By Angela McDaniels

Tacoma, Wash., March 20 - Citibank, NA plans to price callable fixed-to-inverse-floating-rate market-linked certificates of deposit due March 27, 2033 linked to the S&P 500 index, according to a term sheet.

The interest rate will be 7.5% for the first year. In years two through 20, the interest rate will be the contingent floating rate multiplied by the proportion of days on which the index closes at or above the index reference level, which will be 80% of the initial index level. The contingent floating rate will be an annual rate equal to (a) 1.1 times (b) 6% minus Libor, subject to a minimum of zero. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning March 27, 2014, the CDs will be callable on any interest payment date at par.

Citigroup Global Markets Inc. is the agent.

The CDs are expected to price March 22 and settle March 27.

The sales fee will be 3.5% for Citigroup Global Markets and up to 5% for dealers not affiliated with Citigroup Global Markets.

The Cusip number is 172986GD7.

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