Citigroup plans to price 11%-12% ELKS linked to Caterpillar stock

By Angela McDaniels

Tacoma, Wash., Aug. 7 - Citigroup Funding Inc. plans to price Equity LinKed Securities due seven months after issue linked to the common stock of Caterpillar Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a coupon of 11% to 12%, with the exact rate to be set at pricing. Interest will be paid at maturity.

If Caterpillar stock declines by 35% or more during the life of the notes, the payout at maturity will be a number of Caterpillar shares equal to par of $10 divided by the initial share price or, at each holder's option, the value of those shares in cash. Otherwise, the payout will be par.

The ELKS will price and settle in August.

Citigroup Global Markets Inc. is the underwriter.

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