Published on 10/11/2011 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $5.6 million strategic market access notes linked to MLP basket
By Toni Weeks
San Diego, Oct. 11 - Citigroup Funding Inc. priced $5.6 million of strategic market access notes due Jan. 10, 2013 linked to a basket of energy-related master limited partnerships, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes the common units of Atlas Pipeline Partners, LP, El Paso Pipeline Partners, LP, Enbridge Energy Partners, LP, Enterprise Products Partners, LP, EV Energy Partners, LP, Linn Energy, LLC, Magellan Midstream Partners, LP, Oneok Partners, LP, Plains All American Pipeline, LP, Spectra Energy Partners, LP, Targa Resources Partners, LP, Teekay LNG Partners LP and Western Gas Partners, LP. The basket components will be rebalanced to equal weighting on June 6, 2012.
Interest is payable quarterly. The interest rate is 0.1% per year plus the total amount of ordinary cash dividends with respect to the basket components for which an ex-date has occurred during each quarterly interest period, if any, for each $1,000 note.
The payout at maturity will be the net investment value on Jan. 7, 2013.
On the pricing date, the net investment value was $990 per note. On each subsequent trading date, the net investment value is (A) (i) $990 times (ii) the basket return percentage of the energy MLP basket, which compares the value of the basket on that trading day to its value on the pricing date plus (B) any accrued dividends up to and including that trading day minus (C) the 1% per year basket adjustment factor calculated up to and including that trading day.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Strategic market access notes
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| Underlying basket: | Atlas Pipeline Partners, LP, El Paso Pipeline Partners, LP, Enbridge Energy Partners, LP, Enterprise Products Partners, LP, EV Energy Partners, LP, Linn Energy, LLC, Magellan Midstream Partners, LP, ONEOK Partners, LP, Plains All American Pipeline, LP, Spectra Energy Partners, LP, Targa Resources Partners, LP, Teekay LNG Partners LP and Western Gas Partners, LP, equally weighted; rebalanced to equal weight on June 6, 2012
|
| Amount: | $5,601,000
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| Maturity: | Jan. 10, 2013
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| Coupon: | 0.1% plus total amount of ordinary cash dividends with respect to basket components for which an ex-date has occurred in a quarterly interest period, if any; payable quarterly
|
| Price: | Par of $1,000
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| Payout at maturity: | Net investment value on Jan. 7, 2013; net investment value on any day is (A) (i) $990 times (ii) the basket return percentage of the energy MLP basket, which compares the value of the basket on that trading day to its value on the pricing date plus (B) any accrued dividends up to and including that trading day minus (C) the 1% per year basket adjustment factor calculated up to and including that trading day
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| Pricing date: | Oct. 6
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| Settlement date: | Oct. 12
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| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 1%
|
| Cusip: | 1730T0PB9
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