By Angela McDaniels
Tacoma, Wash., Nov. 26 - Citigroup Funding Inc. priced $53.31 million of zero-coupon principal-protected trust certificates due May 23, 2013 linked to a global index basket via Safety First Trust Series 2007-4, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of the S&P 500, Dow Jones Euro Stoxx 50 and Nikkei 225 indexes.
The payout at maturity will be par plus any positive return on the basket. Investors will receive at least par.
Prior to maturity, investors may exchange each $10 principal amount of trust certificates held for one security with a $10 face amount and one warrant with a $10 notional amount.
At maturity, each security will pay a redemption amount equal to par of $10 plus the basket return.
The equity index warrants will be automatically exercised at maturity. If the value of the underlying basket increases or does not change, the warrants will pay zero. If the value of the basket decreases, the warrants will pay $10 multiplied by the absolute value of the percentage decrease in the basket.
The certificates have been approved for listing on the American Stock Exchange under the symbol "AKN."
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc. via Safety First Trust Series 2007-4
|
| Issue: | Principal-protected trust certificates
|
| Underlying indexes: | S&P 500, Dow Jones Euro Stoxx 50 and Nikkei 225, equally weighted
|
| Amount: | $53.31 million
|
| Maturity: | May 23, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any basket gain; floor of par
|
| Exchange ratio: | One equity index participation security with a $10 face amount and one equity index warrant with a $10 notional amount per $10 trust certificate
|
| Exchange redemption amount: | $10 plus the basket return for each $10 equity index participation security
|
| Warrant exercise: | At maturity; warrants will pay $10 multiplied by absolute value of any decrease in the index; if the index does not decrease, warrants will pay zero
|
| Pricing date: | Nov. 21
|
| Settlement date: | Nov. 27
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 3.25%
|
| Listing: | Amex: AKN
|
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