Citigroup plans issue of 0% Lasers linked to three indexes

By Laura Lutz

Des Moines, June 4 - Citigroup Funding Inc. plans to price an issue of three-year 0% notes structured as Index Leading Stockmarket Return Securities (Lasers) linked to equal weights of the Dow Jones Euro Stoxx 50 index, Nikkei 225 Stock Average and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any gain on the basket multiplied by the upside participation rate, which is expected to be between 135% and 145% and will be determined at pricing.

If the final basket level is below the initial basket level, the payout will be par unless, at any time during the life of the notes, the basket level drops below a threshold level that will be about 75% of the initial level. In that case, investors will be fully exposed to the decline in the basket.

The exact threshold will be set at pricing.

Citigroup Global Markets Inc. will be the agent.

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