Citigroup plans to price 11%-13% ELKS linked to Dow Chemical

By Angela McDaniels

Tacoma, Wash., June 2 - Citigroup Funding Inc. plans to price Equity LinKed Securities due December 2010 linked to the common stock of Dow Chemical Co., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 11% to 13%, with the exact rate to be set at pricing. Interest will be paid monthly.

If the price of Dow Chemical stock declines by 25% or more during the life of the notes, the payout at maturity will be a number of Dow Chemical shares equal to par 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 notes are expected to price June 25 and settle three business days later.

Citigroup Global Markets Inc. is the underwriter.

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