Citigroup plans callable step-up range accrual notes on S&P, Libor

By Jennifer Chiou

New York, March 18 - Citigroup Funding Inc. plans to price callable step-up range accrual notes linked to the S&P 500 index and Libor-BBA, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 7% for the first five years. Beginning April 1, 2016, the interest rate will be the per-year rate multiplied by the proportion of days on which the S&P 500 closes at or above 900 and Libor-BBA is 6.5% or less. The initial per-year rate is 10%, and it will step up to 15% on April 1, 2021. Interest is payable quarterly.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning on April 1, 2012.

The securities (Cusip: 1730T0LZ0) will price and settle in April.

Citigroup Global Markets Inc. is the underwriter.

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