By Angela McDaniels
Tacoma, Wash., March 26 - Citigroup Funding Inc. priced $21.11 million of zero-coupon principal-protected trust certificates due March 27, 2014 linked to the S&P 500 index through the Safety First Trust Series 2009-1, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus 105% of any index gain. Investors will receive at least par.
Prior to maturity, investors may exchange each $10 principal amount of trust certificates held for one equity index participation security with a $10 face amount and one equity index warrant with a $10 notional amount.
At maturity, each equity index participation security will pay a redemption amount equal to $10 plus 105% of any index gain or 100% of any index decline.
The equity index warrants will be automatically exercised at maturity. If the index increases or does not change, the warrants will pay zero. If the index decreases, the warrants will pay $10 multiplied by the absolute value of the decline.
The issuer said it has applied to list the trust certificates on the NYSE Arca under the symbol "AJB."
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Safety First Trust Series 2009-1 for Citigroup Funding Inc.
|
| Issue: | Principal-protected trust certificates
|
| Underlying index: | S&P 500
|
| Amount: | $21.11 million
|
| Maturity: | March 27, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 105% of any index 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: | For each equity index participation security, $10 plus 105% of any index gain or 100% of any index loss; for each warrant, $10 multiplied by absolute value of index return if index declines or zero if index gains
|
| Initial index level: | 806.12
|
| Pricing date: | March 24
|
| Settlement date: | March 27
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 3.25%
|
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