By E. Janene Geiss
Philadelphia, Sept. 26 - Citigroup Funding Inc. priced $28.28 million of zero-coupon principal-protected trust certificates due Oct. 10, 2013 linked to the S&P 500 index through the Safety First Trust Series 2008-4, according to a 424B filing with the Securities and Exchange Commission.
Payout at maturity will be par of $10 plus 90% of any index gain. Investors will receive at least par.
Each certificate is exchangeable into one security and one warrant.
The equity index warrants will be automatically exercised at maturity. The warrants will pay nothing if the index is at least its initial level. Otherwise, the warrants will pay par times the absolute value of the decline.
If the index increases, the securities issued upon exchange will pay $10 plus 90% of the gain at maturity. If the index decreases, the securities will pay $10 minus the decline.
The certificates have been approved for listing on the American Stock Exchange under the symbol "AHY."
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc. via Safety First Trust Series 2008-3
|
| Issue: | Principal-protected trust certificates
|
| Underlying index: | S&P 500
|
| Amount: | $28,275,000
|
| Maturity: | Oct. 10, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 90% of any positive basket return, 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 multiplied by the percentage change in the index per $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
|
| Starting level: | 1,185.87
|
| Pricing date: | Sept. 24
|
| Settlement date: | Sept. 29
|
| Agent: | Citigroup Global Markets Inc.
|
| Fees: | 3.25%
|
| Listing: | "AHY" on the American Stock Exchange
|
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