Citigroup plans protected callable leveraged CMS spread notes due 2029

By Susanna Moon

Chicago, Dec. 4 - Citigroup Funding Inc. plans to price callable leveraged CMS spread principal-protected notes due 2029, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be 8.25% to 8.75% until 2014, payable quarterly. After that, the rate will be four times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, with a floor of 0% and a cap of 10%. The precise initial rate will be determined at pricing.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning March.

Citigroup Global Markets Inc. is the underwriter.

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